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Compute and Interpret Cash Flow Ratios Use the following information to compute and interpret cash flow ratios. Average Operating Current Company Cash Flow Liabilities CAPEX
Compute and Interpret Cash Flow Ratios Use the following information to compute and interpret cash flow ratios. Average Operating Current Company Cash Flow Liabilities CAPEX $2,156 $6,581 $2,425 2,181 1,007 3,365 1,220 5,192 1,984 5,718 3,752 2,750 a. Compute the operating cash flows to current liabilities ratio. Compared to the average of 0.5 for large public companies, assess each company's liquidity as low, medium, or high (i.e. its ability) to settle liabilities as they come due) b. Compute the operating cash flow to CAPEX ratio. Compared to the rule of thumb of 1.0 assess the company's solvency as either low, medium, or high. Round answers to two decimal places. Company Operating cash flow to current liabilities Liquidity Operating cash flow to CAPEX Solvency
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