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Is Working capital is a measure of a company's profitability?
No, working capital is not a direct measure of a company's profitability. Instead, it represents the difference between current assets and current liabilities, indicating a company's short-term financial health and liquidity. While sufficient working capital can support operations and indirectly contribute to profitability, it does not directly assess a company's overall profitability, which is typically measured by metrics like net income or return on equity.
The positive difference between revenue and costs?
Profitability
The relationship between current assets and current liabilities is important in evaluating a company's?
Liquidity
How do you determine the optimum level of current assets?
a trade off between profitability and risks.
How could the return on assets indicator provide relevant data on the profitability of a company?
The Return on Assets Indicator or ROA shows the relationship between a company's profits to its actual assets. It is a measure of the company's profitability.
What is relationship between liquidity profitability and solvency?
If liquidity inceases profitability decreases so there is inverse relationship
What is the difference between profitability and liquidity?
liquidity is how quickly an item can be converted to cash, usually to pay short term debts, profitability is how much money an entity has after taking sales revenue - cost of goods sold...so gross margin
Explain the relationship between liquidity and profitability for a bank?
Profitability is the difference between income and expense. Liquidity is the ability to turn assets in to cash quickly. Vault cash is the most 'liquid' asset. Stocks and bonds are liquid because they can be sold immediately; real estate is 'illiquid' because it may take a long time to sell. Note that 'liquid' does not mean you can sell at a profit, or even at fair market value, just that it can quickly and easily be sold for cash.
Is Working capital is a measure of a company's profitability?
No, working capital is not a direct measure of a company's profitability. Instead, it represents the difference between current assets and current liabilities, indicating a company's short-term financial health and liquidity. While sufficient working capital can support operations and indirectly contribute to profitability, it does not directly assess a company's overall profitability, which is typically measured by metrics like net income or return on equity.
Liquidity and yield analysis?
what is the comparison between liquidity & yield analysis ??????
What is the optimal amount of cash that a company should maintain on its balance sheet?
The optimal amount of cash that a company should maintain on its balance sheet depends on various factors such as the company's size, industry, and financial goals. Generally, it is recommended for companies to have enough cash to cover their short-term obligations and unexpected expenses, while also considering opportunities for growth and investment. Maintaining a balance between liquidity and profitability is key in determining the optimal cash level for a company.
What is the difference between liquidity and equity?
Starting from your basic accounting balance sheet, you have 3 categories: Assets, Liabilities, and Equity. Your equity is the difference between your Assets and your liabilities. Liquidity refers to how easy you can convert an asset into cash. Houses would be illiquid and things like stocks are probably more liquid.
The trade off between profitability and risk is?
trade off between ris and profitability
What was the most serious task that the convention faced?
how to achieve a balance between liberty and authority
What is the relationship between the yield and liquidity of securities?
kmkm
What makes some companies more profitable than others and what are the similarities and differences between profit and profitability?
what are the similarities and differences between profit and profitability?
The positive difference between revenue and costs?
Profitability
