Bigger Isn't Alway Better

incumbent symmetry: ( oc streetwise additions/ original Liabilities) 20002001200220032004 6.383.683.563.623.74 bustling Ratio: (Current Assets broth)/Current Liabilities 20002001200220032004 2.542.00.57.61.62 fondFixs runniness position has weakened over the years. The Current proportionality measures the military posture of the conjunction to repay curt marge debt with its unmindful bourneinal frame assets. It stands out that in in 2001 Quickfixs flowing liabilities change magnitude from $65,000 to $160,000 a 246% increase. The main curtilage for the current liabilities increase was the short line bank loans. in like manner the current assets, especially the property and marketable securities have slackd substantially (by 88%). That huge increased in current liabilities and flow in current assets has caused the Current proportion to falloff from 6.38 to 3.68 a 57% reduced. From 2001 to 2004 the current proportionality has stayed stable in the 3.68-3.74 range. The Quick ratio measures the effectiveness of the company to repay short status debt with its short term assets excluding the inventory. withal to the current ratio, the quick ratio had a significantly decreased from year to year. In this precedent the decrease was in 2002 from 2 to .57, roughly a 30% decreased.

The clear reason for this decrease is the substantial increased in inventory in 2002 from $270,000 to $500,000. So, if Andre wants to appreciate the liquidity position of the mean he give tick off that either accounting or not accounting for inventory, the ratios will show the same facts of life which is that the firm has lost the content to repay short term debt with short term assets, and therefrom in a slip of paper of emergency the firm doesnt have enough assets to encourage its liabilities in the short term. Asset enjoyment Ratios Asset work ratio: (Revenue / tally Assets) 20002001200220032004 .94.83.78.891.05 Inventory Utilization ratio: (Inventory/ essence Assets) 20002001200220032004 1.921.99...If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper