Current Assets
Submitted by aday on July 17, 2011
- Category: Business
- Words: 446
- Pages: 2
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Current Assets
Current Assets
A company’s working capital is current assets less current liabilities. Any company with a positive working capital has enough short-term assets to pay off its current liabilities. There are working capital ratios that measure the management’s efficiency in operations. A simple ratio is the current ratio (current assets/current liabilities) and another ratio is the quick ratio ([current assets – inventories] / current liabilities). Usually when a company has a ratio greater than 1, this is a good sign that the company has the ability to manage their short – term financial obligations. Looking at General Electric’s 2010 balance sheet they recorded...
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