Quick ratio and Renewables: Difference between pages

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''Financial ratio analysis - liquidity ratios.''
''Energy''


(Current assets <i>less</i> Inventories) / Current liabilities.
Renewables is an abbreviation for renewable sources of energy.


The quick ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.<br />
Renewables:
If the quick ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets (excluding inventories).


*Are not depleted by being used; and
*Cause substantially less environmental damage than fossil fuels.


<b>Example</b><br />
Current assets (excluding inventories) = £3m. <br />
Current liabilities = £4m. <br />


The Quick ratio is: <br />
Renewables include water, wind and solar power.
= 3 / 4 <br />
= 0.75.
 
 
The quick ratio is also known as the Acid test or the Acid test ratio.<br />
Inventories are sometimes also known as Stock.




== See also ==
== See also ==
* [[Balance sheet ratio]]
* [[Corporate social responsibility]]
* [[Current assets]]
* [[Fossil fuel]]
* [[Current liabilities]]
* [[Green bond]]
* [[Current ratio]]
* [[Peak demand]]
* [[Inventory]]
* [[Peak oil]]
* [[Liquidity]]
* [[Liquidity ratio]]
* [[Stock]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Liquidity_management]]

Revision as of 20:57, 5 September 2017

Energy

Renewables is an abbreviation for renewable sources of energy.

Renewables:

  • Are not depleted by being used; and
  • Cause substantially less environmental damage than fossil fuels.


Renewables include water, wind and solar power.


See also