assets divided by current liabilities. Digital Cube's figure is higher than Cowan's in 2006. But, Digital cube's current ratio decreases -33.6% [=variation:(2007ratio-2006ratio)/2006ratio)] in 2007. And Cowan's current ratio increases 35.63% in 2007 although in first time it is lower than Digital cube's. The point tell us that the Cowan's liquidity is better than the Digital Cube's. Therefore it
companies in the same industry within same country. Then, the paper further scrutinizes each component of DuPont Identity and compares how well each company is carrying out operating, investing and financing activities. As a result, from these analyses, the paper derives some meaning from the ratio and suggests few reasons why one company’s stock price with respect to another is overpriced or u
asset in its operational use and maintain profitability so that the company might rely on higher land values instead of actively doing operational activities for increasing profits. Also, it creates unearned return. In other aspects, however, revaluation of fixed asset can be helpful if the company decides to invest in another business because revalued price can tell the exact price that Naver ca
assets
Two company show very similar Asset turnover
; quite low
It result from the fact that they are automobile
manufacturing company
Operating performance & Financial position - HONDA
Preparing for the Future
economic slowdowns
global political and economic uncertainties
fluctuations in oil and raw material prices
movements in currency
strengthen its
asset. It is also uneconomical - opportunity cost. So cash ratio is managed adequately.
※Caution
It is very sensitive to small events. If account receivable is lager, then cash ratio is volatile. So it often cannot show anything.
1.2. Current Ratio
The current ratio measures the cushion of working capital that companies manintain to allow for the inevitalble unevenness in the f