Ratio Analysis

WORKING CAPITAL A measure of both a  fraternitys efficiency and its short-term financial health. Positive working bully means that the follow is able to make off its short-term liabilities. Negative working capital means that a high society currently is unable to meet its short-term liabilities with its current assets cosmopolitan MotorsToyota Motors 2008200920082009 Current Assets44.2759.2512.0611.50 Current Liablilities75.6152.4411.9110.78 Working Capital(31.34)6.810.150.72 CURRENT RATIO A liquidity  proportionality that measures a companys ability to pay short-term obligations. Also know as liquidity ratio, cash asset ratio and cash ratio.The high(prenominal) the current ratio, the to a greater extent capable the company is of paying its obligations. world(a) MotorsToyota Motors 2008200920082009 Current Assets44.2759.2512.0611.50 Current Liablilities75.6152.4411.9110.78 Working Capital0.591.131.011.06 QICK RATIO An indicator of a companys short-term liquidity. The quick ratio measures a companys ability to meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better the position of the company. Also known as the acid-test ratio or the quick assets ratio.

This ration is more conservative than current ration and more well known liquidity ration as it excludes inventory from current assets because round companies find difficulties in turning their inventory into cash. Quick confine = Quick Assets / Current Assets General MotorsToyota Motors 2008200920082009 Cash 14.7336.616.2724.8 Short-term investments0.140.136.755.50 last-place Accounts Receivables 7.927.5220.3714.15 Total22.7944.2543.3944.45 Current Liabilities75.652.4411.9110.78 Quick Ratio0.300.843.644.12 DEBT TO EQUITY A measure of a companys financial leverage mensurable by dividing its total... If you want to get a full essay, rewrite it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.