Current asset

The current ratio is a very commonly used ratio that is useful for showing a company’s ability to cover its short-term obligations with its readily available assets. The more current assets the firm has in comparison to its current liabilities, the less of a risk that firm runs of defaulting on these payments when they come due. The actual ratio supposes that all current liabilities must be paid off immediately with the balance of current assets at that time. For this reason, it is very much…

even be negative; for instance, if the company has a strong market position and can control purchasing terms to suppliers that is it can postpone its payments (Brennan, 2003). Richards and Laughlin (1980) concluded that traditional ratios such as current ratio, Quick acid test and cash ratios cannot measure the true position about about working capital and insisted, using inflows and outflows of cash as a product of acquisition, production, sales, payment and collection process done over time.…

It is the excess of the purchase price over the fair value of all the tangible assets acquired, arrived at by carefully ascertaining the value of such assets—at least in theory. The analyst must be alert to the makeup and the method of valuation of Goodwill as well as to the method of its ultimate disposition. One way of disposing of the Goodwill account, frequently preferred by management, is to write it off at a time when it would have the least impact on the market's assessment of the…

Pizza Pizza – Changes in Sales, Total Assets, Shareholder’s Equity & Net Income Change in sales: Pizza Pizza’s sales have increased by 5.3% in 2015 to 533.8 million from 505.4 million in 2014, this was primarily due to geographic diversification among eastern provinces which helped provide consistent restaurant sales and stable growth in sales over the past five years. Change in Net Income: Pizza Pizza’s net income increased by 0.871% to 25.23 million from 25.16 million in 2014. The increase…

Deferred tax expense may be negative which results in current tax expense being less than current income tax obligation” (Income Tax: Current Vs. Deferred, 2013). A deferred tax expense, a benefit, is either the decrease or increase in the deferred tax asset balance pertaining to through the specified accounting period, from start to finish. Deferred tax assets should be reduced by a valuation allowance if there is a possibility of it not being…

the calculated margins for profitability, leverage – to estimate the amount of debt in the company’ assets. In 2013 and 2014, EasyJet was not highly leveraged, because the amount of debt is less than the equity in the company; but 2012, the yearly debt exceeded the equity, meaning that in 2012 the company was highly leverage. The last part of the table is concerning the company’s security and assets, which can be bought or sold quickly, meeting the company’s financial obligations, without…

expense generally made to acquire an asset or improve the capacity of the asset. Unlike Revenue Expenditure, which is an expense made for operating day-today activities of the business. The difference between Capital and Revenue is explained here. Capital Expenditure Vs Revenue Expenditure 1. Comparison Chart 2. Definition…

The overall attractiveness of the industry is moderate. As a whole, the audio entertainment industry provides hundreds of thousands of jobs directly and indirectly. As a consumer, the attractiveness of this industry is high. The consumer has the ability to choose between the programming of AM/FM, internet, and satellite radio, based on their likes and dislikes, vis-a-vi payed programming versus commercial programming. The attractiveness remains high on the part of the consumer due to their…

Delivery, at 16 and 20 times respectively. This would further reinforce the idea of negligence on Speedy Deliveries part as other competitors in the industry do not have issues with consumers. - The higher than average turnover rate explains the high current and quick ratios, as the revenue in accounts receivable is yet be collected but counted towards usable cash. Number of Days in Collection Period The number of days in the collection period measures on average how many days a company takes…

analysis) Current Ratio The current ratio of Dutch Lady in year 2013 is 1.91 times. It means that it has RM1.91 in current asset for every RM1 in current liability. It also means that Dutch Lady has its current liability covered 1.91 times over. The current ratio of Nestle in year 2013 is 0.90 times. It means that it has RM0.90 in current asset for every RM1 in current liability. It also means that Nestle has its current liability covered 0.90 times over. In theory, the higher the current ratio…