http://www.samedayairfreight.com/wp-content/uploads/2014/10/Bigstock_-73015106-Loading-Cargo-Plane-no-2-300x200.jpgAlthough a stronger ratio demonstrates which the figures for current assets exceed People for recent liabilities, the composition and high-quality of existing assets are crucial factors within the Assessment of an individual company’s liquidity.
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Ways to Interpret: This share represents all other assets not elsewhere recorded, for example extended-phrase bonds.
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Ways to Interpret: Dividing the inventory turnover ratio into 365 times yields the standard amount of time units are in stock.
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