|
NAME |
RATIO |
UNIT |
FORMULA |
IT SHOWS: |
|
Basic Liquidity Ratios |
Short-term Coefficient |
value |
 |
what is the company's
capacity to settle its short-term liabilities with short-term assets it
possesses? The recommended value is equal to 2. The value less than 1.5
shows that the company is in solvency problems. Short-term assets can be
calculated as the sum of assets to be sold, inventory. short-term
operating receivables, short-term financial investments as well as
financial assets. |
| Accelerated
Coefficient |
value |
|
whether the company
would manage to cover its current short-term liabilities if it were
unable to use (sell) the inventory to cover the liabilities.
The recommended value of this ratio is around 1. |
| Quick Coefficient |
value |
 |
whether the company is
able to settle its current short-term liabilities using the money it has.
The recommended value is somewhere around 0.5. Yet in practice it
irarely occurs that any company would achieve this value. |
|
Other Liquidity Ratios |
Coefficient of Financial Stability |
value |
|
to
which extent are the long-term assets financed by equity and long-term
liabilities? It is recommended that this value is less than 1 because a
part of short-term assets must be financed by long-term liabiliites. |
|
Short-term Assets vs. All Assets |
value |
 |
what part of total assets represent short-term assets? |
| Net
Current Assets |
value |
 |
what is the difference in the value of short-term assets and liabilities? |
|
Short-term Coefficient |
Short-term Coefficient |
value |
|
what is the company's
capacity to settle its short-term liabilities with short-term assets it
possesses? The recommended value is equal to 2. The value less than 1.5
shows that the company is in solvency problems. Short-term assets can be
calculated as the sum of assets to be sold, inventory. short-term
operating receivables, short-term financial investments as well as
financial assets. |
|
Accelerated Coefficient |
Accelerated Coefficient |
value |
|
whether the company would manage to cover its current short-term
liabilities if it were unable to use (sell) the inventory to cover the
liabilities.
The recommended value of this ratio is around 1. |
|
Comparing Liquidity Ratios |
Quick Coefficient |
value |
|
whether the company is
able to settle its current short-term liabilities using the money it has.
The recommended value is somewhere around 0.5. Yet in practice it
irarely occurs that any company would achieve this value. |
| Accelerated
Coefficient |
value |
 |
whether the company
would manage to cover its current short-term liabilities if it were
unable to use (sell) the inventory to cover the liabilities.
The recommended value of this ratio is around 1. |
| Short-term
Coefficient |
value |
|
what is the company's
capacity to settle its short-term liabilities with short-term assets it
possesses? The recommended value is equal to 2. The value less than 1.5
shows that the company is in solvency problems. Short-term assets can be
calculated as the sum of assets to be sold, inventory. short-term
operating receivables, short-term financial investments as well as
financial assets. |
|
Liquidity Ratios by Months |
Coefficient of Financial Stability |
value |
 |
to
which extent are the long-term assets financed by equity and long-term
liabilities? It is recommended that this value is less than 1 because a
part of short-term assets must be financed by long-term liabiliites. |
|
Short-term Assets vs. All Assets |
value |
|
what
part of total assets represent short-term assets? |