As we apply financial metrics to see how a business is doing and troubleshoot problems, we review the financial statements together. Using our knowledge of financial terms, please answer the following:
What does a business’s current ratio tell you about its liquidity?
What is a main source of cash and a main use of cash for a new, growing business?
Describe the difference on a balance sheet between quick assets and current assets.
If a business uses financial leverage well, what does it do to its Return on Equity?
