Discuss three liquidity ratios and their importance.

Q: Explain debt to equity ratio and how to calculate.

A:

Q: Define Debt-to-equity ratio

A: Debt to equity ratio is an important ratio which is used by the companies in order to determine the…

Q: List TWO (2) factors that contribute to it LIQUIDITY

A: Liquidity means how easily an asset or a security can be converted into cash without even affecting…

Q: Explain an example how to calculate debt ratio.

A: Debt Ratio: Debt ratio is the percentage of assets of the company that are procured or financed…

Q: Ca) Calculate liquidity ratios and interpret your answer

A: Liquidity ratio gives an idea of how much cash and cash equivalent the Company has in hand after…

Q: Liquid ratio formula?

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

Q: Briefly describe five limitations of financial statement analysis.

A: Financial statement analysis is a process made for analysing the financial statements of the company…

Q: Summarize some of the Key Financial Ratios?

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

Q: Define Liquidity Analysis?

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

Q: Define each of the following terms:b. Spontaneous liabilities; profit margin; payout ratio

A: Spontaneous liabilities are an organization's obligations that are quickly accumulated because of…

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: the liquidity- cash ratios, quick ratios and current ratios.

A: Current Ratio = Current Assets/Current Liabilities 2019 = 12,837,699/5,735,569 = 2.238 2020 =…

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: Calculate the debt ratio

A: Debt ratio is a financial ratio which is calculated by dividing the total liabilities by the total…

Q: Describe at least three problems encountered in the analysis of financial indicators.

A: Financial indicators are utilized by firms almost everywhere and in all sizes in order to provide…

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: What are the different types of liquidity ratios in accounting?

A: Liquidity measures: Liquidity measures denote a company’s capacity to meet its current liabilities.…

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: Identify the three types of comparisons commonly used in financial statement analysis.

A: Financial Statement Analysis: The financial statement analysis is the process of analyzing the…

Q: discuss the important of financial market, then illustrate with a diagram the flow

A: Financial market is that place where the trading of securities takes place. Financial market…

Q: What is Liquidity-stage Financing? Please give an explaination in 1 paragraph!

A: A startup or venture goes through various stages of finance throughout its life starting from…

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: Explain three purposes or objectives of Financial Analysis.

A: The financial statement analysis refers to the analysis of all the financial statements of the…

Q: Define the term s liquidity position?

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

Q: Of the three financial ratios, which do you think is the most important financial ratio? Why?

A: A financial ratio is used to calculate the financial position as compared to the other firms in the…

Q: Calculate the liquidity ratios and current ratios?

A: Liquidity ratios include quick ratio, current ratio, and cash ratio. The Quick ratio is the…

Q: From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio,

A: Introduction: - Ratio analysis used to analysis business performance. It gives idea of company…

Q: Define liquidity, financial stability, and solvency.

A: Accounting is used to keep the records of business transaction up to date in the process of…

Q: Define liquidity ratios.

A: Liquidity Ratios: The term Liquidity refers to the ability of the company to meet its current…

Q: How does measure liquidity?

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

Q: Which of the following ratios is used to analyze a company's liquidity?

A: Earning per share, Return on assets, assets turnover ratio all are not liquidity ratios. But current…

Q: Define debt ratio

A: Ratio refers to the relationship between the two quantities which shows the quotient of one divided…

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: Three common tools of financial analysis are:

A: There are following three common tools of Financial analysis- Horizontal Analysis Vertical Analysis…

Q: Identify two ratios to use to analyze a firm’s liquidity position, andwrite out their equations.

A: Ratio analysis are generally used for various purposes which can include liquidity, solvency,…

Q: Compare the key Financial Ratios?

A: The question is based on the concept of financial ratios. The ratio is used to analysis financial…

Q: Risk Ratios

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

Q: Explain the purpose of ratio analysis, and list the four maincategories of financial ratios.

A: Ratio Analysis refers to the method of checking a company's operational efficiency, liquidity, and…

Q: Explain payout ratio

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

Q: Calculate the liquidity- cash ratios, quick ratios and current ratios.

A:

Q: What are the four aspects of rate-of-return analysis?

A: Rate of return analysis tells the rate of return which a investment can give. It carefully analyse…