Current asset Essays

Boston Beer Company Section 2 Team 1 Zhannur, Kairat, Dana, Assel, Didar Part 1 – How attractive is the beer industry? Market share growth: Forecasted growth of total domestic beer sales up to 7-10 %. Consumer Tastes: Consumers became more sophisticated and required a broader range of specialty drinks. Potential entrants: New breweries with their original receipts. Substitutes: Other alcohol drinks. Customer requirements? How do firms compete? Key Success Factors More flavor and natural product,

defined as the ability to convert assets quickly into to cash (Liquidity, 2014). A good standing liquidity is good for companies as well as investors and lenders to the company. For the company it’s a great indication as to whether it will meet short term maturing obligations or not. For creditors and investors, a good standing liquidity portrays the ability of how quick a company can pay off debts. Current Ratio (Current assets ÷ Current liabilities) The current ratio (working-capital ratio) is

as they come due by using the company's current or quick assets, • Current ratio= current assets current liabilities AVP= 1.34 ULTA= 2.9 REVLON= 15.86 • Quick ratio = ( current assets - inventory) current liabilities AVON= .94 ULTA= 1.12 REVLON= 15.26 The safe rate for current ratio is 1 or up, that means the current assets can cover the current liabilities, we see that the current ratio for AVP is 1.34 which means it is it has ability to cover the current liabilities once they become due. Quick

to pay its debts and expenses. Liquidity is the key indicator of short term financial strength. The Current Ratio “The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets”(myaccountingcourse). After the expansion corporations current ratio has decreased from 2.33 times of current assets to 1.17 current assets. Where the industry average is 2.7(Table1).

Financial Ratio Analysis Liquidity Current Ratio and Acid Test Ratio Cracker Barrel’s average current ratio is .98 and average acid test ratio is .55. These averages are below the average in comparison to the Cheesecake Factory average current ratio is 2.5 and average acid test ratio is 2.2. Therefore, Cracker Barrel has enough current assets to cover their liquidity ratio, so they are providing themselves an excellent financial stability. Above all, the current ratio and acid test ratio includes

financial year of 2015 as compared to financial year of 2014. We will look at current ratio, acid test ratio, inventory turnover ratio and receivable turnover ratio to examine Modern Technology’s liquidity as a company over the two years. Current ratio: Modern Technology’s current ratio improved slightly from year 2014 to year 2015. A higher current ratio is desirable because it shows that Modern Technology is able to make current debt payment easily. This can be further supported by the increase in

Liquidity ratio • Current ratio: • Quick ratio Current ratio=current assets/current liabilities Current ratio 2001 2000 A-Tech 1.16 0.95 Bi-Sci 2.25 2.17 Quick ratio=current assets –inventories/current liabilities Quick ratio 2001 2000 A-Tech 0.57 0.45 Bi-Sci 1 0.92 Interpretation: Current ratio is the ratio in which current assets divided by current liabilities. Bi-Sci Company has more liquidity as compared to A-tech Company. Activity ratio: Receivable turnover=credit sales/receivables Receivable

All Numbers are based on The Annual Financial Report for the year 2014. Numbers in Thousands Liquidity Rations: • Current Ratio= Current Assets/Current Liabilities Current Assets= 260,478/45,558 = 5.72:1 This ratio was selected to help evaluate Port Everglades’ liquidity in the short-term. For 2014 for every dollar of liabilities that Port Everglades, there is $5.72 of current assets. This means that Port Everglades has the ability to cover more than 5 times the number of liabilities and can easily

show the shareholders three major things: • Assets (These are things that are owned by ASDA) - Materials that an entity has acquired or purchased, and that has money value (its cost, book value, market value, or residual value). An asset can be physical, such as cash, machinery, inventory, land and building. Assets shown on their ASDA’s balance sheet are usually classified according to the ease with which they can be converted into cash. • Fixed assets are owned by ASDA and are expected to be retained

are current ratio, and quick ratio. The current ratio is used to determine an organizations ability to pay back the organizations short-term and long-term obligations. To gage this ability the current ratio consists of the current total assets of a company (both liquid and illiquid) relative to that organizations current total liability. The formula for current ratio is as follows; Current ratio = current assets/current liabilities.

received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants on the measurement date. Another important criteria in fair value measurement is that all the measurement are market-based but not entity-based and, the measurement requires to take market conditions to account, especially the principal market and it is basically measured using the assumptions that would be used by market participants in order to price an asset or liability. However

Cash Ratio measures the cash available to the company in order to satisfy its short-term liabilities. Cash ratio of at least .5 is better because there are very few companies that actually have enough cash to cover their current liabilities. The cash ratio is the most conservative look at a company’s liquidity since it only looks at the cash. This ratio is an indication of a company’s creditworthiness and is used to decide how much credit should be extended to the company. In the case of Newmont

this will enable to adequately evaluate their current positions in the market, and to eventually learn as to which one of the two truly applies the better or most successful business model. British Airways Plc (‘BA’) is the national carrier of the United Kingdom,

company’s ability to pay debt obligations. For 2015 and 2016 Targets current ratios were greater than 1 meaning that if the company was to liquidate they would be able to pay 100% of their current liabilities with their current assets. In 2017 the current ratio went down to .94 which means they have more current liabilities than current assets. The Acid Test ratio shows if a company has enough quick assets to cover its current liabilities. Targets Acid Test ratio went from up from 2015 to 2016 and

decrease in value of a non-current asset during a given accounting period. (Company Act , 1965) .Depreciation is the term applicable to tangible non-current asset which has physical substance, can be seen and touched. First of all, Straight Line method is also known as Fixed Instalment method. It is the most commonly used method. The annual depreciation expense or charge to the profit and loss account. It is also charges cost evenly throughout the useful life of a fixed asset. The straight line method

Significant Asset Items On the balance sheet the three components that gives the results are assets, liabilities, and owner’s equity. Shopify: The 2016 balance sheet period for Shopify show the asset that have significant value. The one assets that Shopify has with the most value is short-term investment and that is value at $308,401 (in thousands). The other assets that show value in the current assets section is cash and cash equivalent: $84,013 (in thousands), net receivables: $21,495 (in thousands)

for the week, so state in the submission area. 16-A1 Balance Sheet and Income Statement Weikart Company Balance Sheet December 31, 20X0 Assets Amount ($) Current Assets: Cash and equivalents $55,000 Accounts receivable, net 48,000 Inventories 36,000 Prepaid expenses 15,000 Interest income 15,000 Total Current Assets: $229,000 Non-Current Assets: Property, Plant and Equipment At cost $580,000

Current ratio shows the ratio between the current assets and current liabilities and shows the ability of the company to meet its current liabilities out of its current assets. The liquidity position of the company is sound as it is maintaining the constantly the current ratio of around 1.6 and it is also at par with the industry average of 1.6. Further, quick ratio is also one of the ratios to assess the soundness of the liquidity position of the company. The quick ratio is also at par with the

Current ratio enables us to examine the liquidity of the business by equating the amount of current assets to current liabilities. Although current ratio fluctuates from industry to industry, is preferred to have at least one dollar of current assets for every dollar of current liabilities. Kohl's has the advantage over J.C Penney, as Kohl's current ratio is 1.87 in comparison to J.C. Penney?s ratio of 1.67. Kohl?s Corporation can pay all of its current liability and still have

The short-term liquidity of JB HI-FI is captured by the capability company sell its assets to raise cash through calculation of metrics includes current, quick and operating cash flow ratio. Particularly, the average current ratio of the company is 1.47 that indicates that for every dollar earned, the company will get $1.47 presented in the asset to change into cash. JB HI-FI quick and cash ratio are getting highest ratio in 2015 while a decrease in 2016. However, it is a non-concern signs since