The Cash Ratio represents a measurement of the liquidity of a company. It evaluates the ability of the business to cover short-term obligations with cash and cash equivalents alone. It is particularly useful to creditors when deciding how much money they are willing to loan to a company. Suppliers also Read more…
Introduction We perform a liquidity ratio analysis to evaluate the ability of the company to settle its obligations on time. The most common use case is when lenders and creditors want to gain a better understanding of the financial health of a borrower or customer. Analysts use the gained insights Read more…
Introduction Most significant new projects for a business require investments in Working Capital, and this harms a company’s cash flow. Proper cash management is essential if we want the company to continue to operate in the future. A business can be profitable, but if it can’t keep cash on hand, Read more…
Financial Ratio Analysis is a form of Financial Statement Analysis that we use to obtain a quick view of the financial performance of a company in critical areas. Ratios can be used to compare one company against another or one period against another. To compare different companies, we use Common Read more…
In today’s article, we will look at what Financial Analysis stands for, how to perform it and, most importantly, why it is essential for businesses. What is Financial Analysis? If you google the definition, what you get is something along the lines of Financial analysis is the assessment of the Read more…
