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The current ratio is an indication of a firm's accounting liquidity. Acceptable current ratios vary across industries. [1] Generally, high current ratio are regarded as better than low current ratios, as an indication of whether a company can pay a creditor back. However, if a company's current ratio is too high, it may indicate that the ...
A current ratio lower than the industry average could mean the company is at risk for default, and in general, is a riskier investment. However, special circumstances can affect the meaningfulness ...
A current transformer (CT) is a type of transformer that is used to reduce or multiply an alternating current (AC). It produces a current in its secondary which is proportional to the current in its primary. Current transformers, along with voltage or potential transformers, are instrument transformers. Instrument transformers scale the large ...
Current ratio is generally used to estimate company's liquidity by "deriving the proportion of current assets available to cover current liabilities". The main idea behind this concept is to decide whether current assets which also include cash and cash equivalents are available pay off its short term liabilities (taxes, notes payable, etc.)
Quick ratio. In finance, the quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures the ability of a company to use near-cash assets (or 'quick' assets) to extinguish or retire current liabilities immediately. It is the ratio between quick assets and current liabilities. A normal liquid ratio is considered to be 1:1.
The difference between current assets and current liability is referred to as trade working capital. The quick ratio, or acid-test ratio, measures the ability of a company to use its near-cash or quick assets to extinguish or retire its current liabilities immediately. Quick assets are those that can be quickly turned into cash if necessary and ...
Development. Misconduct. v. t. e. In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities. Liquidity is the ability to pay short-term obligations.
In electrical engineering, impedance is the opposition to alternating current presented by the combined effect of resistance and reactance in a circuit. [1]Quantitatively, the impedance of a two-terminal circuit element is the ratio of the complex representation of the sinusoidal voltage between its terminals, to the complex representation of the current flowing through it. [2]