financial ratios (1 Viewer)

[melly_b]

What are you guys stressing about??
The syllabus only says that you need to know the debt:equity ratio

 

[superbird]

actually no. the syllabus requires us to know the following ratios.
Liqudity
Gearing
Profitability Ratios
Operating Expenses Ratio
Accounts Receivable Ratio

 

[Seraph]

having high liquidity basically means that you have more than enough working capital which is just sitting there not 'working' for you. when you takeover/merge with another business, this capital is generating yet more revenue for you, so it is 'working' for you, but yes, you could say it is an extreme measure and should only be used as a last resort..same with expansion.

yes but when we merge with another corporation , we are gaining more cash more assets etc

This is going to make the Liquidity ratio even HIGHER , i wanna know how to reduce it

 

[ToO LaZy ^*]

ok..leave out merger....but stick with takeover.