FNT1-Task1_MEMO - Ratio Analysis: Select Quartile Strength,...

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Ratio Analysis: Select Quartile Strength, Company D Industry Weakness, or Ratio: Year 11 Year 10 Data No Concern ___________ 3.1 Current Ratio 1.69 1.83 2.1 Select Option: 1.4 Total Current Assets / Total Current Liabilities The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. It is expressed as follows ______________________________________________________________________________ _______________ 1.6 Acid-Test Ratio 0.39 0.61 0.9 Select Option: 0.6 (Cash and Cash Equivalents + Short-Term Investments + Accounts Receivable, net) / Total Current Liabilities In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a company to use its near cash or quick assets to immediately extinguish or retire its current liabilities. Quick assets include those current assets that presumably can be quickly converted to cash at close to their book values. ______________________________________________________________________________ _______________ 13 Inventory Turnover 5.15 6.1 10.2 Select Option: 8.3 Cost of Merchandise Sold / ((Merchandise Inventory 11+ Merchandise Inventory 10) / 2) In accounting, the Inventory turnover is an equation that measures the number of times inventory is sold or used over in a period such as a year. The equation equals the cost of goods sold divided by the average inventory. Inventory turnover is also known as inventory turns, stockturn, stock turns, turns, and stock turnover. ______________________________________________________________________________ ______________ 35.2 Accounts Receivable Turnover 32.1 32.2 33.5 Select Option: 31.4 (NET SALES * 0.6) / ((Accounts Receivable, net + Accounts Receivable, net) / 2)
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Receivable Turnover Ratio is one of the accounting liquidity ratios, a financial ratio. This ratio measures the number of times, on average, receivables (e.g. Accounts Receivable) are collected
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This note was uploaded on 08/25/2011 for the course BUSINESS LET taught by Professor Mentor during the Spring '11 term at Western Governors.

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FNT1-Task1_MEMO - Ratio Analysis: Select Quartile Strength,...

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