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Q: Insurance Companies have a current ratio?
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Why LIC term insurance policy is costlier than other insurance companies?

Probably because, they are the best insurance company in India and have the highest claim settlement ratio


How can one obtain premium whole life insurance?

One can obtain premium whole life insurance through their current insurance company. Several companies such as TD Insurance and BMO Insurance, offer great rates.


Current ratio vs quick ratio?

Current Ratio: The current ratio is calculated by dividing a company's current assets by its current liabilities. Current assets include cash, cash equivalents, accounts receivable, inventory, and other assets that are expected to be converted into cash or used up within one year. Current liabilities include short-term debts, accounts payable, and other obligations that are due within one year. The current ratio provides a broader view of a company's short-term liquidity and is less conservative than the quick ratio. Formula: Current Ratio = Current Assets / Current Liabilities Quick Ratio (Acid-Test Ratio): The quick ratio is a more conservative measure of short-term liquidity. It excludes inventory from current assets because inventory may not be as easily convertible to cash in a short period. Quick assets, which are included in the numerator, typically include cash, cash equivalents, and accounts receivable (net of allowances for doubtful accounts). Like the current ratio, the quick ratio is used to assess a company's ability to cover its short-term obligations, but it focuses on the most liquid assets. Formula: Quick Ratio = (Cash + Cash Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities Key Differences: The main difference between the two ratios is that the current ratio includes inventory in its calculation, while the quick ratio excludes inventory. Inventory can take time to sell and convert into cash, making the quick ratio a more conservative measure of a company's ability to meet its short-term obligations quickly. The current ratio tends to be higher than the quick ratio for most companies because it includes a broader range of assets in the calculation. A current ratio above 1 indicates that a company has more current assets than current liabilities, while a quick ratio above 1 indicates that a company can meet its short-term obligations without relying on inventory. Generally, a quick ratio is considered a more stringent test of liquidity, making it particularly useful for companies with slow-moving or obsolete inventory, or those in industries where inventory can be difficult to convert to cash quickly. Both ratios are valuable tools for assessing a company's financial health, but the choice between them depends on the specific circumstances and the level of conservatism desired in the analysis.


Banks current ratio should be how much?

The ideal current ratio for banks 1.33 : 1


300000 current assets 100000 current liabilities and inventory of 150000 what is the acid test ratio?

acid test ratio = quick assets / current liabilitiesacid test ratio = 150000 / 100000acid test ratio = 150 %

Related questions

Why LIC term insurance policy is costlier than other insurance companies?

Probably because, they are the best insurance company in India and have the highest claim settlement ratio


What is the current legal reserve ratio?

oN iNSURANCE coMPANY PRODUCTS IN CALIFORNIA WHAT IS THE COVERAGE BY THE LEGAL RESERVE?


Are you able to get RV insurance in Toronto Ontario?

Yes, most insurance companies offer RV insurance. Check with your current auto insurance company to see if you can get it added to your insurance package. Check around with other insurance companies to get the best rates and coverage.


How do you get a current ratio?

Formula for current ratio is as follows: Current ratio = Current assets / current liabilities


quick ratio?

quick ratio analyzes whether a company can pay off its short-term obligations using its most liquid assets. the ideal quick ratio for companies is 1.50. quick ratio is calculated as follows:Quick ratio = Quick assets / Current liabilitiesQuick assets = Current assets - Inventory


What are the best insurance companies for business vehicles?

Different insurance companies have various policies regarding the insurance your vehicle requires. Depending on the weight of the truck, you may need commercial truck insurance. Check with your current insurer, as it can also differ by state.


Are there any insurance companies that will insure my new scooter?

There are a few insurance companies that will insure your scooter. I would try Geico.com they can give you pretty accurate quotes at great rates. Otherwise check your current insurance provider


What is a measure of liquidity?

the two ratios that measure liquidity is acid test and current ratio. the acid test ratio is current assets- stock/ current liabilities the current ratio is current assets/ current liabilities


How do i contact ideal life insurance?

Visit the Life Insurance Companies' sites, find out their claim settlement ratio so that you can have a glimpse of their performances and choose the ideal one.


An example of liquidity ratio is the?

current ratio and acid test ratio are examples of liquidity ratios'. current ratio is current asset's/ current liabilities. acid test ratio is current assets- stock / current liabilities.


liquidity analysis?

these ratios analyze how much cash a company has. a liquid company will have cash after its obligations are paid off. some of the ratios calculated here are:a) Current ratioCurrent ratio = Current assets / Current liabilitiesb) Quick ratioQuick ratio = Quick assets / Current liabilitiesQuick assets = Current assets - Inventoryc) Cash ratioCash ratio = Cash / Current liabilities


The ratio of current assets to current liabilities is called the?

The ratio between current assets to current liability is called "Current Ratio".