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Acid Test Ratio ( > 1 . 0 ) - ability to pay its short - term obligations Avg: 1 . 7 3 - The

Acid Test Ratio (>1.0)- ability to pay its short-term obligations
Avg: 1.73- The company has a faster inventory turnover and cash conversion cycles. This also proves that a
company is experiencing top-line growth, quickly converting receivables into cash, and are easily able to cover its
financial obligations.
Debt-to-Equity Ratio (2.0)- indicates whether a company is borrowing
more capital or utilizing more assets to fund its operations
Inventory Turnover Ratio (b/w 5.0-10.0)- higher ratio tends
to point to strong sales and a lower one to weak sales
Avg: 12.41- This is higher than the normal ratio - which means, it is efficient in generating sales or revenues from its
asset base.
Return on Assets (>0.05)- indicates how profitable a company is in
relation to its total assets.
Avg: 1.03- the company is utilizing its as
from the market.
5
Current Ratio (>2.0)- 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: 2.65- The company has enough short-term assets on hand to liquidate to cover all short-term liabilities
Add page
!arn more money with a smaller investment. Put simply, a higher ROA
Avg: 2.65- The company has enough short-term assets on hand to liquidate to cover all short-term liabilitiesI am working on getting 5 proofs of ACEN Corporation that it is a mature company. Are the 5 financial ratios supportive of my claim? If not, please help me understand why. Also, kindly give me 5 characteristics of a mature company.5 PROOFS WHY ACEN IS A MATURE BUSINESS:
Acid Test Ratio (>1.0)- ability to pay its short-term obligations
Avg: 1.73- The company has a faster inventory turnover and cash conversion cycles. This also proves that a
company is experiencing top-line growth, quickly converting receivables into cash, and are easily able to cover its
financial obligations.
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