Going forward the company should try to increase this

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Going forward, the company should try to increase this ratio by paying them back more efficiently. Liquidity Ratios Current Ratio 2016 2017 Barrick Gold Corp. =current assets/current liabilities = 6 536/ 2439 = 2.7 = 5 869/ 2 189 = 2.7 Industry = 2.7 = 3.6 Barrick Gold Corporation experienced no change in their current ratio from 2016-2017, which demonstrates their consistency. Although they did not experience a big decrease, such as their competitor, who went from 2.7 to 3.6, this is not too much of a concern. Barrick Gold Corporation should aim to maintain this current ratio in the future and focus on their solvency. Quick Ratio 2016 2017 Barrick Gold Corp. =(Cash + STI + A/R)/Current Liabilities = (3 205 + 654)/ 2 439 = 1.6 = (2 802 + 509)/ 2 189 = 1.5 Industry =1.9 = 2.6
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Barrick Gold Corporation’s quick ratio went down from a 1.6 to a 1.5, which isn’t too big of a decrease. However, when comparing it to their competitor’s quick ratio, which went up by 0.7, it could be seen as a cause for concern. This could be a bad thing because it means that when not taking into consideration their long-term assets, they are not doing well. The decrease in the quick ratio could be because of the decrease in cash and short- term investments from 2016- 2017, from 3,205 to 2, 802. In the future, Barrick Gold Corporation should aim to keep up with their competitor’s quick ratios by efficiently managing their short- term assets. Bibliography: - Quarter-Results/default.aspx
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  • Spring '14
  • ElizabethMulig
  • Generally Accepted Accounting Principles, Barrick Gold, Barrick Gold Corp., Barrick gold corporation

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