BUSN 70 Lecture Notes - Lecture 37: Inventory Turnover, Starbucks, Current Liability
13 Mar 2021
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Microsoft generated sh. 43 in sales for every in total corporate assets. Ratios that measure the speed with which a company can turn its assets into cash to meet short-term debt. High liquidity ratios may satisfy a creditor"s need for safety, but may indicate the company is not using its current assets efficiently. Liquidity ratios are best examined in conjunction with asset utilization ratios because high turnover ratios imply cash is flowing through very quickly. Working with current = value if liquidate within 1 year. Microsoft"s current ratio indicates that for every of current liabilities, the firm had . 90 of current assets on hand. Current assets and liabilities found on the balance sheet. A stringent measure of liquidity that eliminates inventory. A far more stringent measure of liquidity because it eliminates inventory. It measures how well an organization can meet its current obligations without resorting to the sale of its inventory.
