Term
|
Definition
| Indicates inadequate liquidity |
|
|
Term
|
Definition
| Indicates inadequate liquidity |
|
|
Term
Defensive Interval
If small, |
|
Definition
| Implies the company could not survive very long in a financial crisis. |
|
|
Term
Inventory to Working Capital
If large, |
|
Definition
| Indicates poor quality of liquidity |
|
|
Term
Receivables to working capital
If large, |
|
Definition
| Indicates poor quality of liquidity |
|
|
Term
Net Sales to Working Capital
If large, |
|
Definition
| Indicates inadequate liquidity to support sales |
|
|
Term
Debt to Net Worth
If large, |
|
Definition
| Indicates increase financial risk |
|
|
Term
|
Definition
| Indicates increased financial risk |
|
|
Term
|
Definition
| measures debt usage proportionate to tangible assets |
|
|
Term
Short-term debt to Net Worth
If large, |
|
Definition
| Implies extremely high risk situation |
|
|
Term
Times Interest Earned
If small, |
|
Definition
| Indicates insufficient financial solvency and high financial risk. |
|
|
Term
|
Definition
| measures how many times earnings can cover all financial obligations. |
|
|
Term
|
Definition
| The measure of the owners return on investment in the firm |
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