Business Administration 1220E Lecture Notes - Market Liquidity, Current Asset, Current Liability

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Business Administration 1220E Full Course Notes
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Business Administration 1220E Full Course Notes
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Measure of earnings relative to investment made with shareholder, owner and/or company funds. Increased earnings are the desired proceeds from invested funds. Proportion of assets financed by shareholder, owner and/or company funds (equity). Measures the proportion of debt and equity used to finance assets. Determines how many times the interest expense could be paid given the company"s earnings. Compares profit levels to the amount of interest owed. Measures short-term liquidity by comparing total ca to total cl. Excludes inventory as a current asset and compares only cash, marketable securities and ar to current liabilities. Comparing the current ratio to the acid test will point to the company"s reliance on inventory as a liquid asset. The amount by which current assets exceed total current liabilities. Determines remaining funds after current obligations are met. How many days, on average, a company takes to collect on outstanding accounts from customers. How many days, on average, a company takes to pay suppliers and/or creditors.

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