WebExpert Answer. 100% (1 rating) Situation where current ratio is misleading as an indicator of short term debt paying ability : Current ratio = Current assets / Current liabilities When a large portion of closing inventory of finished goods which is very difficult to be liquidated …. View the full answer. Previous question Next question. WebA high current ratio is generally considered a favorable sign for the company. Creditors are more willing to extend credit to those who can show that they have the resources to pay obligations. However, a current ratio that is too high might indicate that the company is missing out on more rewarding opportunities.

A Guide To Bad & Misleading Data Visualization Examples - datapine

WebThe current ratio can vary throughout the production cycle of the farm business (i.e. planting may have increased liabilities versus harvest time when may have increased assets on hand). The Farm Finance Scorecard shows: Greater than 2.0 is strong. Look to improve the current ratio to above 2.0; 2.0 to 1.3 falls in the caution range. WebThe current ratio can be calculated using the following formula: Current Ratio = Current Assets / Current Liabilities. It is important to note that many of these terms have precise … uhcmr mapd and ma/rds formulary

Federal Register, Volume 88 Issue 71 (Thursday, April 13, 2024)

WebJul 12, 2024 · The current ratio can yield misleading results under the circumstances noted below. Large Inventory Component When the current assets figure includes a large … Webratio of current liabilities toassets and to sales.3 An industrythat requires relatively largecurrent assets tends to rely toa greater extent on short-term financing than an … WebJun 28, 2024 · This means net revenues may be falling or extremely low because of excessive inventory expensing. Other red flags can include inventory increasing faster than sales, decreases in inventory... thomas l. geisel funeral home chambersburg pa