Please interpret the numbers and compare the number, no required to explain the theory. Also answer if the business is a going concern? CKM RATIOS: 2016 2017 2018 2019 2020 2021 Current ratio 0.66 0.58 0.96 0.92 1.06 0.83 Quick ratio 0.43 0.37 0.58 0.53 0.49 0.57 Operating cash flow ratio 0.10 0.01 0.01 0.00 0.02 0.07 PWC RATIOS: 2016 $000 2017 $000 2018 $000 2019 $000 2020 $000 2021 $000 Current ratio 2.37 2.23 2.07 1.89 2.74 2.16 Quick ratio 0.93 0.95 0.81 0.80 1.36 1.01 Operating cash flow ratio 1.02 0.72 0.96 0.47 0.32 0.52
Please interpret the numbers and compare the number, no required to explain the theory. Also answer if the business is a going concern? CKM RATIOS: 2016 2017 2018 2019 2020 2021 Current ratio 0.66 0.58 0.96 0.92 1.06 0.83 Quick ratio 0.43 0.37 0.58 0.53 0.49 0.57 Operating cash flow ratio 0.10 0.01 0.01 0.00 0.02 0.07 PWC RATIOS: 2016 $000 2017 $000 2018 $000 2019 $000 2020 $000 2021 $000 Current ratio 2.37 2.23 2.07 1.89 2.74 2.16 Quick ratio 0.93 0.95 0.81 0.80 1.36 1.01 Operating cash flow ratio 1.02 0.72 0.96 0.47 0.32 0.52
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please interpret the numbers and compare the number, no required to explain the theory. Also answer if the business is a going concern?
CKM RATIOS:
|
2016
|
2017 |
2018
|
2019
|
2020 |
2021
|
|
|
|
0.66 |
0.58 |
0.96
|
0.92
|
1.06 |
0.83
|
|
Quick ratio |
0.43
|
0.37 |
0.58 |
0.53 |
0.49 |
0.57 |
|
Operating |
0.10 |
0.01 |
0.01 |
0.00
|
0.02 |
0.07 |
PWC RATIOS:
|
|
2016 $000 |
2017 $000 |
2018 $000 |
2019 $000 |
2020 $000 |
2021 $000 |
|
Current ratio
|
2.37 |
2.23 |
2.07 |
1.89 |
2.74 |
2.16 |
|
Quick ratio |
0.93 |
0.95 |
0.81 |
0.80 |
1.36 |
1.01 |
|
Operating cash flow ratio |
1.02 |
0.72 |
0.96 |
0.47 |
0.32 |
0.52 |
Expert Solution
Step 1 - Ratios
Current Ratio = Current Assets/ Current Liabilities
Quick Ratio = (Current Assets - Inventory - Prepaid Expense) / Current Liabilities
Operating Cash Flow Ratio = Operating Cash Flow / Current Liabilities
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