Case Study : Aspire Inc.

In regards to current ratio we can see that CVS improved from 2009 to 2010, but in 2011 it fell once again. The higher the current ratio the more favorable it reflects on the company; in 2010 for every dollar of current liabilities the company had $1.60 of current assets to pay back its short term liabilities. Current cash debt coverage ratio demonstrates a better understanding of the company’s average day standing. Liquidity improved for CVS from 2009 to 2011.

For this case study I am going to discuss 3 health promotions, the 3 health promotions I will be discussing are; obesity, exercise and smoking. All 3 of these health promotions are from a patient whose care I was involved with for a number of weeks. I have gained full consent from the patient and their relatives. In relation to the Data Protection Act 1998 (Legislation.gov.uk, 1988)

There was a slight improvement in current ratio between 2005 and 2007, from 0.58 to 0.63. It then dropped to 0.53 in 2008, but increased again over the following two years, ending 2010 at 0.59. This measures AT&T’s ability to pay its short-term liabilities with short-term assets. In general, a current ratio over 1 is desirable because when it falls below one, it could mean that the company is unable to pay off its short-term liabilities, due to a shortage of cash on hand.

Ratios of ten companies are presented in this study. The companies are all headquartered in the United States and the financial statements are the most recent annual financials for the respective fiscal years ending in 1999 or 2000.

This ratio is similar to current ratio, except that it excludes inventory from current assets. Inventory is subtracted because it is considered to be less liquid than other current assets, that is, it cannot be easily used to pay for the company’s current liabilities. A company having a quick ratio of at least 1.0, is considered to be financially stable. It has sufficient liquid assets and hence, it will be able to pay back its debts easily (Qasim Saleem et al., 2011).

ASAP Construction, LLC is a construction company that is located in Chesapeake, Virginia. They are the top choice in Virginia Beach, Chesapeake, Portsmouth, and Norfolk VA. ASAP Construction has been working hard from the get go since 1991. They are the rotted wood and termite damage specialists. Some of their projects include kitchen renovation, sunroom addition, stair railing remodel, deck installation, Hardie siding, FallsCreek gazebo, and more. ASAP Construction, LLC has won the 2008 and 2009 Best of Chesapeake- Installation Service Awards.

Quick Ratio- The quick ratio measures the dollar amount of liquid assets available for each dollar of current liabilities so the higher the ratio the better. All three companies have a quick ratio of over 1 meaning that it has over a $1 of liquid assets to cover each $1 of current liabilities. Chubb is the highest again, with PHLY in the middle, and Travelers with the lowest quick

1) Based on your knowledge of business, briefly explain the three primary objectives of any firm or organization to be competitive and sustainable.

a. Current ratio is known as the company’s ability to pay back their debits and obligations. The current ratio of .98 which is under 1 means the company would not be able to pay of the obligations that it owes. This shows the company is not in good standing and will cause more risk, if invested into.

S&S Air’s current ratio is below the average of the Light Airplane industry and this can be an issue for the firm. To be exact, S&S Air’s current ratio was 0.7498, compared to a median of 1.43 and upper quartile of 1.89. This means that S&S Air has $0.7498 in current assets for every $1 in current liabilities. Moreover, the company’s current ratio is less than 1, which translates to its current assets being less than its current liabilities and this is clearly visible

The current ratio will help us understand ASNA’s liquidity, meaning how quickly the company can turn its assets into cash in order to pay off its short-term obligations.

According to Cleverley, W.O., Song, P.H., Cleverley, J.O, (2011), “Current Ratio is a liquidity ratio that measures the proportion of all current assets to all current liabilities to determine how easily current debt can be paid off’ (p.520). The above chart demonstrated desirable results in the year 2013 for both ratios. In addition, Cleverly et al. defined that the “Quick Ratio is a measure of the organization’s liquidity namely, cash + marketable securities + net accounts receivable/current liabilities” (p.532).

If this ratio is high means company owns too many debts which may decrease their

This group of ratios emphasis can easily indicate the Amcor’s capability to meet short term debt obligations. Current ratio and Quick ratio will be calculated in this part. These two ratios are quite similar, short term creditors, such as bankers and suppliers are interested in this class of ratios, because they can measure the short term debt-paying ability of company.

CURRENT RATIO show a company’s ability to pay its current obligations that is company’s liquidity. The current ratio position is lower for Honda at 0.33 than for Toyota at 1.22 in 2010. Honda has a large portion of receivables in assets both in trade, notes receivables and finance receivables. It has a huge portion of cash as well. This indicates the company has no problem in terms of generating a positive influx of assets. But in terms of liabilities it has a large portion of short term debt which makes almost 1/3rd of total Current liabilities. Also there is a significant portion of Long Term debt. The higher level of liabilities in the denominator reduces the overall ratio.