Ratios cash

Cash ratio Current assets - inventory/current liabilities 1.0-1.5... 

The ratio of total current assets to total current liabilities is called the current ratio. The ratio of immediately available cash (i.e., cash plus U.S. Government and other marketable securities) to total current liabilities is known as the cash ratio. The current and cash ratios are valuable for determining the ability to meet the financial obligations, and these ratios are examined... 

Determine the current ratio, cash ratio, and working capital for Company E at the given date. 

A company that is heavily in debt is said to be highly leveraged. In general, a company that is highly leveraged may be a candidate for a takeover. So too, companies with high cash ratios are good candidates. Corporate raiders are interested in such companies. 

Cash Criterion. The criterion used here is the cumulative cash position (CCP), which is simply the worth of the project at the end of its life. For criteria using cash or monetary value, it is difficult to conpare projects with dissimilar fixed capital investments, and sometimes it is more useful to use the cumulative cash ratio (CCR) which is defined as... 

The definition effectively gives the cumulative cash position normalized by the initial investment. Projects with cumulative cash ratios greater than 1 are potentially profitable, whereas those with ratios less than unity cannot be profitable. 

Cumulative Cash Ratio (CCR) = 1.897 Rate of Return on Investment (ROROI) = 11.4%... 

In terms of the cash ratios, discounting the cash flows gives a lower ratio. In the above exanples,... 

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