By looking at the company\'s balance sheet, provide the data for one of the liqu
ID: 2817067 • Letter: B
Question
By looking at the company's balance sheet, provide the data for one of the liquidity ratios and give your analysis on the liquidity of the company. [Link required as part of response]
Locate the annual report (from the last 12 months) for one of the 30 Dow Jones companies http/len wikipedia.org/wiki/Dow Jones Ind By looking at the company's balance sheet, provide the data for one of the liquidity ratios from chapter 4 and give your analysis on the liquidity of the company [Link required as part of responsel iquidity RatiosExplanation / Answer
Selected Company - Exxon Mobil/XON
https://in.finance.yahoo.com/quote/XOM/balance-sheet?p=XOM
Liquidity Ratio
Liquidity ratios are measurements used to examine the ability of an organization to pay off its short-term obligations. This ratios show whether the company is liquid or not in its nature.
Examples of liquidity ratios:-
Current Ratio
Acid Test Ratio
Cash Ratio
Current Ratio = Current Assets/Current Liabilities
= 47,134,000/57,771,000
0.8158
A company is generally said to be highly liquid if its current ratio is more than 1.
Here the current ratio of this company is less than 1. So, the company is not said to be less liquid. To pay current liability of $1, company only has assets of $0.8158.
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