Author: Mohamed Ali

How to Analyze a Company’s Financial Position

Bookkeeping

It’s the amount of money that would be left if all assets were sold and all liabilities paid. This money belongs to the shareholders, who may be private owners or public investors. If you’re new to the world of financial statements, this guide can help you read and understand...

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SAM: On-demand tax prep and advisory services for CPA firms

Bookkeeping

SPbinder’s sign-offs, cross-references, annotation tools, and leadsheets allow you to review your tax workpapers in a completely paperless environment. Firms of all sizes understand the hectic and stressful nature of tax season. Outsourcing even a portion of your tax preparation workload can help make peak season more manageable. Our...

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SAM: On-demand tax prep and advisory services for CPA firms

Bookkeeping

SPbinder’s sign-offs, cross-references, annotation tools, and leadsheets allow you to review your tax workpapers in a completely paperless environment. Firms of all sizes understand the hectic and stressful nature of tax season. Outsourcing even a portion of your tax preparation workload can help make peak season more manageable. Our...

Continue Reading

Current Ratio Definition, Formula, and Calculation

Bookkeeping

During times of economic growth, investors prefer lean companies with low current ratios and ask for dividends from companies with high current ratios. In this example, although both companies seem similar, Company B is likely in a more liquid and solvent position. An investor can dig deeper into the...

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Current Ratio Definition, Formula, and Calculation

Bookkeeping

During times of economic growth, investors prefer lean companies with low current ratios and ask for dividends from companies with high current ratios. In this example, although both companies seem similar, Company B is likely in a more liquid and solvent position. An investor can dig deeper into the...

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What Is the Current Ratio? Formula and Definition

Bookkeeping

The current ratio is a broader measure considering all current assets, while the quick ratio is a more conservative measure focusing only on the most liquid current assets. Analyzing the quality of a company’s current assets can provide insights into its liquidity. For example, a company with a high...

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What Is the Current Ratio? Formula and Definition

Bookkeeping

The current ratio is a broader measure considering all current assets, while the quick ratio is a more conservative measure focusing only on the most liquid current assets. Analyzing the quality of a company’s current assets can provide insights into its liquidity. For example, a company with a high...

Continue Reading

Current Ratio Formula Example Calculator Analysis

Bookkeeping

For example, a company may have a very high current ratio, but its accounts receivable may be very aged, perhaps because its customers pay slowly, which may be hidden in the current ratio. Analysts also must consider the quality of a company’s other assets vs. its obligations. If the...

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