Statement Of Cash Flows. When Comparing Statement Of Cash

The current ratio shows the short-term debt-paying ability of the company also known as liquidity ratio. Components of the current ratio are current assets and current liabilities. To find the current ratio, divide current assets by current liabilities. For example if a current ratio was 2:1, then that company would be able to pay off its short term debt easily. But you should also look at the types of debt the company has because some assets might be larger. For the current ratio a rule of thumb is the ratio should be around 2:1. The company wants to at least make sure that the value of the current assets covers at least the amount of the short-term obligations. In 2013 the current ratio is 1.75 and in 2014 the current ratio is 1.8. This is showing a favorable

The quick ratio denotes that the company's ability should satisfy the short-term obligations. In brief, how many times can the firm respond its current liabilities by using current assets without the final stock? As many times it can cover its obligations, as better for the company.

The current ratio measures the company’s ability to pay its short term obligations with its short term assets. Between Coca Cola and PepsiCo, PepsiCo has a higher current ratio implying that is more capable of paying its obligations. The debt management policies of Coca-Cola in conjunction with share repurchase program and investment activity resulted in current liabilities exceeding current assets. From the ratio Pepsi Co suddenly had to pay all its short-term

As the creditors’ view, they prefer the high current ratio. The current ratio provides the best single indicator of the extent, which assets that are expected to be converted to cash fairly quickly cover the claims of short-term creditors. However, consider the current ratio from the perspective of a shareholder. A high current ratio could mean that the company has a lot of money tied up in nonproductive assets.

This is due to popularity and success. According to Wikipedia, Apple has actually made a lot more money than Microsoft has over the years, but 2016 may be a different story with what Microsoft has in store. Apple will no doubt respond as they always do to companies releasing top of the line devices. However, Microsoft has as impressive of a line-up as anybody does right now. It will be interesting to see which one of these companies gets the upper hand on the other in the coming

But lets look how it compares in the Numbers APPL Vs. MSFT over the last ten years. It’s a 3000% difference that’s impressive. For Microsoft. In the 10 year period From April 2006 thru April 2016. Apple has risen 2,000 % while Microsoft has risen 5,000%. I feel that they are very comparable for sure. If you put Samsung in the Mix SSNLF It has only seen a 995.09% rise so it’s not really in the same league as the other two. But since the hot comparison is The Galaxy S7 to the Iphone 6S.

The current ratio directly relates the company’s current assets against its current liabilities. A good current ratio will be over 1. For example if the current ratio were 2.0 this would mean that the company’s current assets are twice as large as its current liabilities. For Tesla Motors the current ratio drops significantly over the years. It starts at 2.76 in 2010, then drops to 1.95 in 2011, and finally reaches 0.97 in 2012. As you can see the current ratio in 2012 is below one. The current ratio of 0.97 means that as of December 2012, Tesla Motors has more current liabilities than current assets.

The current ratio is a widely used measure for evaluating a company’s liquidity and short-term debt-paying ability. The ratio is computed by dividing current assets by current liabilities. A high current ratio indicates that a company has sufficient current assets to pay current liabilities as they become due. The 2016 ratio of 0.79:1 means that for every dollar of current liabilities, General Mills had $0.79 of current assets. The current ratio increased from 0.75:1 in 2015. Compared to the industry average of 1.83:1, General Mills appeared to be less liquid.

The liquidity ratios assess debt financing. Retaining a larger amount of higher working capital, Google has a greater current ratio that Apple. Similarly, the

Q3: What accounts for these differences? How much of the difference is inherent in the way each of the two companies competes? How much is due strictly to differences in the efficiency of the operations?

The quick ratio, also known as acid-test ratio shows capability of a company to meet its short-term financial liabilities. It can be calculated as Current Asset – Inventory/ Current Liabilities (Cash + Marketable Securities + Accounts Receivable / Current Liabilities).

shareholders. Therefore when ROE is analysed beside Microsoft’s ROA, the drop on ROE warrants further investigation. Liquidity Ratios: Liquidity ratios determine a company's ability to pay off its short-term debts obligations. When the value of the ratio is high this means that there is a larger margin of safety to cover short-term debts. Current ratio =Current Assets/Current Liabilities: Current ratio indicates the extent to which the company is able to pay back its short-term liabilities (under one year) using its short-term assets without having to resort to selling its fixed assets to do so. Ideally the figure should always be greater than 1, meaning that there are sufficient assets to repay liabilities. Quick Ratio =Current Assets - (Inventories, Deferred income taxes ² & Other current assets)/Current Liabilities: The Quick ratio indicates very much the same information as the Current

One feature that Apple offers that Microsoft doesn’t have is ITunes and an App store which offer customer to buy as much music as they want to be stored on their phone, iPod or computer or mac. This means that Apple appeals to a larger target group and can get more business. One feature that

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.

In general the more liquid the current assets, the less the margin needed above current liabilities (Graham, Meredith, p.34, 1998). The quick ratio is more descriptive than the current ration since it excludes the inventory. For example, Apple, Inc. at the end of Sep 2010 has total current assets $41,768m with cash and cash equivalents of $11,261m and total current liabilities $20,722m. The current ratio of Apple is 2.02 and quick ratio 0.54, which are quite superior compared to other industrial players (Table I). Obviously, we will have no wonder about Apple’s profitability when we are playing with an iPhone 4.