2019 NIGA CERTIFICATION COURSE
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ANALYSIS Ø Liquidity ratios indicate a company’s ability to pay short-term debts. They focus on current assets and current liabilities. Ø Solvency ratios are used to analyze a company’s long-term debt-paying ability and its financing structure. (c) 2019 - N WADDELL, CPA, CGMA, PROFESSIONAL CORP.
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FINANCIAL HEALTH (LIQUIDITY)
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(c) 2019 - N WADDELL, CPA, CGMA, PROFESSIONAL CORP.
short-term liquidity
Current assets - (subtract) Current liabilities
Net Working Capital =
**A negative result indicates insufficient funds to meet current financial obligations.
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(c) 2019 - N WADDELL, CPA, CGMA, PROFESSIONAL CORP.
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