Financial Performance
Financial Performance
Subject: Managerial Finance I
Instructor: Bob
Students: Lawrence C.
Monica E.
Carrington B.
Date: 06/13/2006
The current ratio is a comparison of a firm's current assets to its current liabilities. For example, Dell's Inc. current assets are 16,897. (in millions) and its current liabilities are 14,136, (in millions) then its current ratio would be 16,897. (in millions) divided by 14,136, (in millions), which equals 1.1. This was the fiscal years ending January 28 ,2005
In comparison, Hewlett Packard current assets are 43,334,(in millions), and its current liabilities are 31,460, (in millions) then its current ratio would be 43,334,. (in millions) divided by 31,460, (in millions), which equals 1.1. This was the fiscal years ending October 31, 2005
The current ratio is an indication of a firm's market liquidity and ability to meet short-term debt obligations. Acceptable current ratios vary from industry to industry, but a current ratio......
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Approximate Word Count: 1569
Approximate Pages: 7 (250 words per double-spaced page)
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