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  • Financial Analysis

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    Ryan Jeffrey Padua Curbano
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    Financial Statement Analysis Is undertaken by creditors, investors, and other financial statement users in order to determine the creditworthiness and earning potential of an entity. Liquidity ratio is the company's ability to convert non cash assests into cash or to obtain cash in order to meet current liabilities. Current ratio measures a company's short-term debt paying ability.

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    Financial Statement Analysis Is undertaken by creditors, investors, and other financial statement users in order to determine the creditworthiness and earning potential of an entity. Liquidity ratio is the company's ability to convert non cash assests into cash or to obtain cash in order to meet current liabilities. Current ratio measures a company's short-term debt paying ability.

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    3 views7 pages

    Financial Analysis

    Uploaded by

    Ryan Jeffrey Padua Curbano
    Financial Statement Analysis Is undertaken by creditors, investors, and other financial statement users in order to determine the creditworthiness and earning potential of an entity. Liquidity ratio is the company's ability to convert non cash assests into cash or to obtain cash in order to meet current liabilities. Current ratio measures a company's short-term debt paying ability.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    Financial Statement Analysis

    Is undertaken by creditors, investors, and other

    financial statement users in order to determine the creditworthiness and earning potential of an entity.

    Liquidity Ratio
    Liquidity is the companys ability to convert non

    cash assests into cash or to obtain cash in order to meet current liabilities.

    Working Capital
    Is equal to current assets less current liabilities

    Formula: Working Capital = Current assets Current liabilities

    Current Ratio
    It measures the ability of the enterprise to meet

    its current liabilities out of current assets.

    FORMULA: Current Ratio = Current Assets Current Liabilities


    The current ratio measures a companys short-term debt paying ability.

    Quick (Acid Test) Ratio


    This ratio measures a companys ability to meet

    obligations without having to liquidate inventory.

    FORMULA Quick (Acid Test) Ratio = Quick Assets Current Liabilities


    Quick assets include Cash, Marketable Securities, Accounts Receivable and current Notes Receivable.

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