It should also be noted that industry and company ratios will vary widely. Investors should track this indicator’s performance historically to detect significant variances from the company’s average cash flow/sales relationship along with how the company’s ratio compares to its peers. Cash equivalents are short-term investments that can be easily liquidated, carry low risk of…
For example, inventory is one of the biggest assets that retailers report. If a retail company reports a low inventory turnover ratio, the inventory may be obsolete for the company, resulting in lost sales and additional holding costs. In general, though, a higher inventory turnover ratio is better than a lower one. If your company…
If you want to pursue this strategy, make sure your tenant is qualified for payments and rent. The cash flow statement is one of the three financial reports that a company generates in an accounting period. One of the sections of the cash flow statement is cash flow from investing activities. Positive Cash Flow In…
Eachstate has a corporation act that permits the formation ofcorporations by qualified persons. Incorporatorsare persons seeking to bring a corporation into existence. Moststate corporation laws require a minimum of three incorporators,each of whom must be of legal age, and a majority of whom must becitizens of the United States. To determine which business entity is…
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