What do the Liquidity ratios show?

Q: What is alternative cash flow measures?

A: Cash flow refers to the amount of cash that moves in and out of the business because of its…

Q: What is meant by the term financial leverage?

A: Borrowed Capital: The money which is borrowed by a company from outsiders for a specified period of…

Q: What are the different ways to calculate the Financial ratios?

A: Financial ratios:   Financial ratios are the metrics used to evaluate the capabilities,…

Q: Liquid ratio formula?

A: Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

Q: what is base stock methods?

A: The base stock method is a valuation technique for the inventory asset, where the minimum amount of…

Q: Summarize some of the Key Financial Ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: What is arbitrage?

A: Arbitrage It is the buying and offering of an asset to benefit from a distinction within the cost…

Q: How is liquidity risk associated with the asset side of the balance sheet?

A: Liquidity risk in an asset will motivate the investor/buyer to pay a lower price for acquiring it.

Q: what are the classification of financial market ? Explain its different components?

A: A financial market is an essential part of the financial system. It is defined as a marketplace for…

Q: What are some common red flags in financial statement analysis?

A: Red flags are the situation that persists where stocks are potentially insecure or undesirable.

Q: Explain the importance of financial ratio.

A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…

Q: How to analysis the Liquidity in Finacial Market analysis?

A: Liquidity is the availability of the current assets to fulfill the current liabilities of the…

Q: What is financial markets?

A: Answer: Usually, market is a place where buying and selling of goods and services take place.

Q: Explain why financial analyst are interested in liquidity and solvent ratios

A: Liquidity Ratios help in determining the ability to pay its short-term obligations, whereas Solvency…

Q: Why is it important to analyze trends in various financial ratios as well as their absolute levels?

A: Accounting ratio:   It is a number expressed in terms of another to establish relationship among…

Q: What is the basic objective in looking at trends in financial ratios and other data?

A: Financial ratios refer to the accounting ratios which are calculated using the values of two…

Q: What is the mathematical formula of dollar duration of equity and how do you derive it?

A: Dollar duration of equity is a financial metric used to measure the sensitivity of the market value…

Q: What is financial leverage? Explain the concept in relation to fina

A: Financial leverage: Financial leverage is the borrowing of debt to finance assets of the…

Q: Define Equity multiplier.

A: The equity multiplier is a financial leverage ratio that measures the portion of company's assets…

Q: What is the purpose of calculating a set of financial ratios?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Discuss three liquidity ratios and their importance.

A: Liquidity ratios are important for the company to assess the repaying capacity of the…

Q: What caused the increase in liquidity ratios??

A: Liquidity ratios use metrics such as the quick ratio, current ratio, and operating cash flow ratio…

Q: hat are some uses and limitations of financial ratios?

A: The financial ratio is a method of analyzing the financial statement of the company that helps to…

Q: What do the Debt management ratios reveal?

A: Debt management ratio: Debt management ratio reveals the firm’s ability to repay the long term debts…

Q: Money market instruments are distinguished by what characteristics, if any, do they have?

A: The money market is a word that relates to the trading of relatively short-term debt securities.

Q: What is financial leverage?

A: Capital Structure:   It refers to the combination of debt and equity that constitutes the finances…

Q: What is the limitation of Financial Statement Analysis

A: Financial statement analysis is the process of analyzing and evaluating the corporate entity's…