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Not all the times the CAR is good if high. Consider having a high CAR ; this means that a bank's large amount of money is stuck in provisions or risk management , meaning that there will be fewer money left for investment or for the continuation of the activity. The usual CAR is somewhere around 12%.
What else can I help you with?
What is good debt to eqity ratio?
Good debt to equity ratio would be where your Weighted Average Cost of Capital is minimum. You can also see industry standards.
What is a good price to book ratio for evaluating a company's stock?
A good price to book ratio for evaluating a company's stock is typically between 1 and 3. This ratio compares the stock price to the company's book value per share, providing insight into whether the stock is undervalued or overvalued.
Would you expect net income to be a good measure of a company's liquidity?
Generally I would not use Net Income as a measure of liquidity. Net Income is a good measure of profitability, but it does not indicate a company's ability to meet short-term obligations. Some good measures of liquidity include working capital, the current ratio, and the quick ratio.
What is trend ratio?
A trend ratio is a good graphical display of a specific period in time. For example (4 years) and the points on the graph are representative of the (ratio) points---representing each year. For example if you are looking at a trend ratio of working capital...you would hope the trend is going upward, because you always want working capital to trend upward or remain the same (if it was sufficient to begin with). If the ratio is trending downward for working capital you are having less money to work with that is not already spoken for by creditors previously. A graphical display is always easier to look at when you are comparing ratios. NOW take it a step further and have the Revenue Dollars on the X axis and the % of revenue dollars on the Y axis and do a simple mathematical formula and realize your % of change and your loos or gain of Working Capital Exposed Dollars.
What is a debt to income ratio calculator?
It's just as important as your credit score is what some say. Lenders look at this ratio when they are trying to decide whether to lend you money or extend credit. A low DTI shows you have a good balance between debt and income.
What does adequacy means?
adequacy is a noun that means the quality of being enough or good enough.
What is a good ratio for capital asset?
A good ratio for capital assets typically refers to the capital asset turnover ratio, which measures how efficiently a company uses its capital assets to generate revenue. A ratio greater than 1 indicates that the company is generating more revenue than the value of its capital assets, which is generally viewed positively. However, the ideal ratio can vary by industry; capital-intensive industries may have lower ratios, while service-oriented sectors might aim for higher ones. It's essential to compare the ratio against industry benchmarks for meaningful insights.
Is 1.26 current ratio good?
It depends on the nature of business as well as the capital intensity of the business if business is capital intensive the high current ratio required otherwise it is not required to maintain high current ratio
What is good debt to eqity ratio?
Good debt to equity ratio would be where your Weighted Average Cost of Capital is minimum. You can also see industry standards.
Is the employee its adequacy its maintenance or its sanitation if he provides his or her equipment?
The adequacy, maintenance, and sanitation of an employee's equipment are primarily the responsibility of the employee when they provide their own tools. Adequacy refers to whether the equipment is suitable for the task, maintenance involves keeping the equipment in good working order, and sanitation pertains to cleanliness. Therefore, it is essential for the employee to ensure that their equipment meets all these criteria to perform their job effectively and safely.
How can analyst determine whether a companies ratio is good or bad?
An analyst can determine whether a company's ratio is good or bad by comparing it to industry benchmarks, historical performance, and competitors' ratios. Additionally, analyzing trends over time can provide insight into whether the ratio is improving or deteriorating. It is also important for the analyst to consider the company's specific circumstances and industry dynamics when evaluating ratios.
What is a good price to book ratio for evaluating a company's stock?
A good price to book ratio for evaluating a company's stock is typically between 1 and 3. This ratio compares the stock price to the company's book value per share, providing insight into whether the stock is undervalued or overvalued.
Vital financial ratios used in rating insurance companies?
Well, the ratings differ from country to country. However, the main include in accordance with the CAMEL parameters. In insurance business, companies apart from good risk management practice can not do anything concrete to avoid claims ratio. However proper risk selection is must for insurers to escape from too much losses. Main thrust worldwide in fact is on curbing management expenses. In nutshell the main ratios used in insurance industry are 1. Capital adequacy Ratio 2. Asset Quality Ratio 3. Reinsurance ratio 4. Actuarial Ratio 5. Management Soundness Ratio 6. Earnings and Profitability ratio 7. Liquidity Ratio 8. Sensitivity ratio. The above categories contain the ratios as sub dimensions to the above heads. The main, profitability ratio embraces the ratios, Claim, Mgt. expenses, Combined Ratio, ROE and Investment Income ratio besides the said classes of ratios Regards Tanveer Ahmad Darzi
What are the limitations of the current ratio?
Ratios can provide clues to the company's performance or financial situation. However, it will not show whether performance is good or bad. Ratio's require additional quantitative information for an informed analysis to be made.
What is checking ones personal qualities and the adequacy of ones diet?
Optimum NutritionChecking one's personal qualities and the adequacy of one's diet.Optimum Nutrition is only possible if one eat's adequate food, practices good eating habits, and develops good relationships with the Supreme Being and other people.Optimum Nutrition results to good health which makes a person productive.
Is a bulldozer a capital good or a consumer good?
Capital good
Would you expect net income to be a good measure of a company's liquidity?
Generally I would not use Net Income as a measure of liquidity. Net Income is a good measure of profitability, but it does not indicate a company's ability to meet short-term obligations. Some good measures of liquidity include working capital, the current ratio, and the quick ratio.
