Examlex
Explain why a creditor would be concerned if your company had a current ratio of less than 1.0?
Inventory
The goods and materials a business holds for the ultimate goal of resale or processing.
Current Ratio
A measure of how well a company can satisfy its short-term due debts, revealing its liquidity over the year.
Statement Of Financial Position
Another term for the balance sheet, a financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.
Common-Size Statement
A financial analysis tool that displays line items as a percentage of one selected or common figure, facilitating comparisons across different financial periods or companies.
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