LIQUIDITY ANALYSIS (farah amirah).docx

# LIQUIDITY ANALYSIS (farah amirah).docx - LIQUIDITY...

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LIQUIDITY CALCULATION: CURRENT RATIO 2014 2015 2016 12765 13858494 = 0.00092 : 1 1190 14318008 = 0.000083 : 1 50842 20288493 = 0.0025 : 1 QUICK RATIO 2015 2016 (12765 – 0) 13858494 = 0.00092 : 1 (1190 – 0) 14318008 = 0.000083 : 1 (50842 – 0) 20288493 = 0.0025 : 1 ANALYSIS:

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2014 2015 2016 0 0 0 0 0 0 0 Current Ratio Current Ratio According to the graph above, the highest current ratio for three years analysis is Year 2016. It shows that Nakamichi Corporation was getting capable in manage their liabilities. Although this analysis shows a better performance in every year, but still their current ratio is below 1 which is 0.0025. The company is still not in good financial health, it does not necessarily mean that it will go bankrupt since it is increasingly have good ratio.
2014 2015 2016 0 0 0 0 0 0 0 Quick Ratio Quick Ratio The graph above represent that the quick ratio of Nakamichi Corporation become greater in every year which is the company showing a better liquidity position However, this analysis shows that the ratio is under 1 which is the company was not expeditiously in settling their liabilities.

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• Fall '16
• Balance Sheet, Ratio, three years, Nakamichi Corporation

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