FIN 4260 Chap 2 SLIDES

FIN 4260 Chap 2 SLIDES - 1 Part I - Solvency, Liquidity...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Part I - Solvency, Liquidity & Financial Flexibility Chapter 1 The Role of Working Capital Chapter 2 Solvency, Liquidity & Financial Flexibility Chapter 3 Valuation 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Solvency, Liquidity & Financial Flexibility Chapter 2 Agenda 2 Sales A/R Cash Inv Be able to differentiate between solvency and liquidity ratios. Conduct an analysis of a firm’s liquidity.
Background image of page 2
Cash Flow Timeline 3 The cash conver sion period is the time betwee n when The firm is a system of cash flows. These cash flows are unsynchronized and uncertain.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Solvency v. Liquidity 4 A firm is solvent when its assets exceed its liabilities. This accounting measure is based on book, not market values. A firm is liquid when it can pay its expenses on time without undue cost. A firm has financial flexibility when it’s financial policies are consistent with
Background image of page 4
Short-Term Financial Condition 5 Financial analysis is an assessment of a firm’s past, present, and future financial
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/19/2012 for the course FIN 4260 taught by Professor Victorwakeling during the Spring '12 term at Kennesaw.

Page1 / 10

FIN 4260 Chap 2 SLIDES - 1 Part I - Solvency, Liquidity...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online