Explain what it means for a firm to have a current

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Explain what it means for a firm to have a current ratio equal to .50. Would the firm be better off if the current ratio were 1.50? What if it were 15.0? Explain your answers.
Fully explain the kind of information the following financial ratios provide about a firm: QUICK RATIOQuick ratio provides a measure of the short-term liquidity of the firm, after removing the effects of inventory, generally the least liquid of the firm’s current assets. Page 8 of 20StudyBlue printing of MidTerm Concept Review2020-02-17
Fully explain the kind of information the following financial ratios provide about a firm: CASH RATIOCash ratio represents the ability of the firm to completely pay off its current liabilitieswith its most liquid asset(cash). Fully explain the kind of information the following financial ratios provide about a firm: INTERVAL MEASUREInterval measure estimates how longa company could continue operating by depleting its existing current assetsat a rate that is consistent with its average daily operating costs. Fully explain the kind of information the following financial ratios provide about a firm: TOTAL ASSET TURNOVERTotal asset turnover measures how much in salesis generated by each dollarof firm assets. Fully explain the kind of information the following financial ratios provide about a firm: EQUITY MULTIPLIER Equity multiplier represents the degreeof leveragefor an equity investor of the firm; it measures the dollarworth of firm assetseach equity dollarhas a claim to. Fully explain the kind of information the following financial ratios provide about a firm: LONG-TERM DEBT RATIOLong-term debt ratio measures the percentageof totalfirm capitalization fundedby long-term debt.Fully explain the kind of information the following financial ratios provide about a firm: TIMES INTEREST EARNED RATIO Times interest earned ratio provides a relative measure of how well the firm’s operating earnings can cover current interest obligations.

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