The results indicated increase in profitability and gearing ratios and decrease in PE, equity and quick ratios
High current and quick ratios
characterize firms with a good liquidity position.
So pull out your game playbook (budget), print out your year-to-date profit and loss statement, balance sheet, financials for the same time period in 2012, and a copy of s your key performance ratios like gross margin, inventory turns, current and quick ratios
, accounts receivable aging, ROI, to name a few.
In a similar manner, current and quick ratios
declined marginally but stayed quite high.
Nevertheless, in accounting and auditing textbooks, the current and quick ratios
continue to be the focus of liquidity analysis.
Students will identify the driver of the differences in the current and quick ratios
, and will explore issues in managing working capital.
The good quick ratios
of the firms reveal a generally healthy liquidity of the firms.
Several traditional financial ratios (the current ratio and quick ratios
, days' sales in inventory, debt and debt-equity ratios, return on assets, and Altman Z-score) were then calculated based on the equations summarized below.
Consistent with the financial distress and tax hypotheses, general derivatives users have both higher leverage and income tax credits and lower quick ratios
and less tangible assets.
In other words, 1987-1991 quick ratios
were averaged to predict the 1994 CII, while 1991-1995 quick ratios
were averaged to predict the 1998 CII.
To calculate quick ratios
, HFN took retailers' current assets, subtracted their inventories and then divided the results by current liabilities.
In this analysis, we use the current and quick ratios