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Acid Test Ratio ( > 1 . 0 ) - ability to pay its short - term obligations Avg: 1 . 7 3 - The
Acid Test Ratio ability to pay its shortterm obligations
Avg: The company has a faster inventory turnover and cash conversion cycles. This also proves that a
company is experiencing topline growth, quickly converting receivables into cash, and are easily able to cover its
financial obligations.
DebttoEquity Ratio indicates whether a company is borrowing
more capital or utilizing more assets to fund its operations
Inventory Turnover Ratio bw higher ratio tends
to point to strong sales and a lower one to weak sales
Avg: This is higher than the normal ratio which means, it is efficient in generating sales or revenues from its
asset base.
Return on Assets indicates how profitable a company is in
relation to its total assets.
Avg: the company is utilizing its as
from the market.
Current Ratio Indicates if the business has more stability. a high
current ratio is a sign that the company is sufficiently liquid and can
easily pay off its current liabilities using its current assets.
Avg: The company has enough shortterm assets on hand to liquidate to cover all shortterm liabilities
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arn more money with a smaller investment. Put simply, a higher ROA
Avg: The company has enough shortterm assets on hand to liquidate to cover all shortterm liabilitiesI am working on getting proofs of ACEN Corporation that it is a mature company. Are the financial ratios supportive of my claim? If not, please help me understand why. Also, kindly give me characteristics of a mature company PROOFS WHY ACEN IS A MATURE BUSINESS:
Acid Test Ratio ability to pay its shortterm obligations
Avg: The company has a faster inventory turnover and cash conversion cycles. This also proves that a
company is experiencing topline growth, quickly converting receivables into cash, and are easily able to cover its
financial obligations.
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