Fundamentals of Financial Management Speech or Presentation

Fundamentals of Financial Management - Speech or Presentation Exampletio has decreased in 2010 standing at 1.91 and as compared to the drop dead year which was 2.51 and the quick ratio which is 0.691 in 2010 as compared to 1.091 in 2009, but the other ratios shows the comp both has improved a cumulus in managing its financial position as well as performance from that of last year.Current Ratio A flowing ratio measures the relationship of current assets with current liabilities. This is used to break up the solvency of a firm. Higher current ratio measures the firms higher rate of solvency.Acid-Test Ratio (Quick Ratio) - This ratio is used to analyze the liquidity position of a union. It helps an organization to meet the short term obligation with the liquid assets it has. A firm is evaluated to be in better jibe when the quick ratio is higher.Average Age of Receivables While reviewing a firms financial health this is important because it is compared to the honorable mention and collection policy and the industry in which the firm operates. It is countable in terms of days. The analysis shows better result if come in of days is higher.Inventory Turnover Ratio This ratio shows number of times the inventory of a company is being sold and replaced over a certain period of time. Generally a low turnover indicates sturdy sign for a company.Times Interest Earned This is a tool that is used to measure an ability of a company to meet its obligations that is related to debt. If any company fails to meet its obligations then it will be in a position of bankruptcy (Ramachandran & Kakani, 2007).Changes can occur in both the ways, positive or negative. The reason behind the lower current ratio and acid test ratio can be similar and that is cash shortage. Basically the poor credit policy and the collection process of the company can be blamed for higher average age of receivables. Again an inventory turnover ratio implies that the company must have a tight contr ol over the purchasing and simultaneously it also refers that due to