Why is quick ratio deemed a better measure of liquidity?

Q: _______ is a measure of risk while _______ is a measure of risk and liquidity.

A: Capital budgeting is the process of distributing the resources(finance) of the organization in…

Q: WHAT IS THE VALUE OF DISCOUNTED FLOWS

A: As per Time value of money, there are present values as well as future values.

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: What are the advantages of balance sheet?

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: How do you solve ration analysis

A: A financial ratio, also known as an accounting ratio, is the magnitude difference between two…

Q: What does liquidity mean?

A: Liquidity:

Q: Liquid ratio formula?

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

Q: Define Liquidity Analysis?

A: Liquidity analysis is very essential as it shows the ability of the firm in paying short-term bills.…

Q: What is the lnventory·turnover ratio?

A: Inventory turnover ratio: Inventory turnover ratio indicates how many times a corporation has sold…

Q: Define volatility value.

A: Volatility is a rate at which the cost of a security increments or diminishes for a specified set of…

Q: What are the different liquidity tools?

A: Liquid assets are those assets which are either in cash form or can be converted into cash into…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: What is liquidity premium (LP)?

A: Answer: Interest rate theory on liquidity premium is a significant concept in bond investment. It…

Q: ompare and contrast Liquidity ratio and solvency rati

A: Analysis of the company's financial statements, such as the balance sheet and income statement, can…

Q: What is liquidity ratio?

A: Liquidity ratio is very essential as it shows the ability of the firm in paying short-term bills.…

Q: Discuss the importance and differences of liquidity, solvency and profitability.

A: Liquidity is the ability to turn an asset into cash or cash equivalent with ease. Solvency is the…

Q: Define Treynor’s reward-to-volatility ratio

A: Formula to compute Treynor’s ratio as follows:

Q: What do the Liquidity ratios show?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: define volatility

A: Volatility is a rate at which the cost of a security increments or diminishes for a specified set of…

Q: What does a high current ratio indicate?

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: What is the importance of liquidity?

A: Introduction: Liquidity is nothing but the ability of the bank to turn money into cash and to be…

Q: What is the difference between solvency ratio and liquidity ratio?

A: The quantitative technique that helps in the measurement of the liquidity, profitability, solvency…

Q: Define the term s liquidity position?

A: Definition: Liquidity: Liquidity is the capability of a company to pay the short-term liabilities…

Q: How can we determine the firm's liquidity?

A: Liquidity: It can be defined as the ease or comfort with which a firm can convert its securities and…

Q: Why is liquidity ratio important?

A: Liquidity is how easily cash is available on hand. Liquidity ratio is defined as a ratio that is…

Q: QI: Explain in details the Liquidity gaps time profiles and how the gap profiles changes.

A: In finance, liquidity refers to the ability of a business or an individual of converting its assets…

Q: Describe relationship between risk and profitability.

A: Risk and profitability have direct relation. Lower the risk, lower is the return and Higher the…

Q: nover ratio

A: Higher turnover rates imply higher fund expenditures, which might lower the fund's actual quality.…

Q: What are some pros and cons of having a high cash ratio?

A: The ratio analysis helps to analyse the financial statements of the business.  The cash ratio is…

Q: why is there a trade-off between liquidity and solvency?

A: A firm may raise capital through different sources, including equity shares, preference shares,…

Q: do you understand by the term "Liquidity Management". Why is important ?

A: in organisation company have large amount money held in different forms assets but it takes time to…

Q: Which of the following usually is least importan liquidity? Choose Quick ratio

A: Step 1   Hello. Since your question has multiple parts, we will solve the first question for you. If…

Q: How does measure liquidity?

A: The transactions of the company will be analyzed by the management, and it will be recorded in…

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: What is liquidity?

A: Cash is said to be the most liquid asset of the business. Assets are said to be highly liquid if…

Q: What is liquidity (corporation)?

A: Ability of a firm to raise the cash whenever there is need is known as liquidity of the company.…

Q: P/E Ratios and Bubbles?

A: Price Earning ratio shows the relationship between price of the company's share with Earning per…

Q: liquidity ratio

A: INTRODUCTION   It is a ratio which the capability of a company to pay off its debts as and when they…

Q: Risk Ratios

A: Average collection period = 365 * ((Opening accounts receivable + Closing accounts…

Q: Formula for quick ratio?

A: Quick ratio is an important financial ratio used to evaluate the liquidity of the company

Q: Could you please discuss the limitations of financial ratio analysis

A: Introduction Ratio analysis may be defined as that type of analysis tools which is used to ascertain…

Q: Explain payout ratio

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: Distinguish between Current ratio and Quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: solvency ratios

A: Solvency ratio indicates the company's ability to pay off its debt obligation.