Financial metrics Flashcards
How is current ratio measured?
Current assets / current liability
What is the measure of liquidity that does not take into account inventory?
Quick Ratio
When evaluating the current ratio of a company a good company should have a ratio of?
2/1
What does liquidity tell you about a company?
Do they have assets that can be liquidated quickly to meet your liabilities during hard times.
What income statement is the current ratio derived from?
Balance sheet
How do you determine the growth of the company?
Look at the top and bottom line of the income statement for the last ten years. Sales and net income should have grown year over year.
Measure of liquidity
Current Ratio
What are the two of accounting?
Acruel and expense. Based accounting
We are expense we expense as we got
