QUICK
RATIO METHOD IN LIQUIDITY
1. Financial
Statement Analysis
Analysis of financial
statement is the Process to understand financial activities from Financial
statements and use to generate estimates and conclusions useful in conducting
our business activities
2. Ratio analysis of financial statements
a. Liquidity
a) current
ratio
b) quick
ratio or acid test ratio
c) cash
ratio
d) cash
flow liquidity ratio
b. Solvability
a) financial leverage ratio
b) total
debt to total capital ratio
c) total
debt to equity capital ratio
d) long-term
debt to equity capital
e) short-term
debt to total debt
c. profitability
a) cost of goods sold
analysis
b) ROIC
c) ROA or ROI
d) ROCE
e) cash return on assets
d. cash
flow
a) operating CF to current liabilities
b) operating CF to total liabilities
c) operating CF to total assets
d) Cash flow adequacy ratio
e) cash reinvestment ratio
e. bankruptcy
prediction
a)
Univariat
b)
Multivariat Z-Score
c)
Mulivariat Ohlson (logit)
3. Quick Ratio
Definition of Quick Ratio is an
indicator of short term’s liquidity. The quick ratio measures a company’s
ability to meet its short-terms obligation with its most liquid assets. The
higher the quick the ratio, the better the position of the company.
The explanation of the Quick Ratio:
The Quick Ratio
is more conservative than the current ratio, a more well known liquidity
measure, because it excludes inventory from current assets.
Inventory is excluded because
some companies have difficulty turning their inventory in to
cash in the event that short-term
obligation need to be paid off
immediately, there are situations in which the current ratio would overestimate a
company’s short-term financial strength.
4. Elements Of Current Assets
a. Cash
and cash equivalents
b. Short-term
Investments
c. Account
Receivable
d. Inventory
e. prepaid
expenses
5. Current Liabilities
Current Liabilities are often mean as all liabilities of the business
to be settled in cash within the one fiscal year or one operating cycle of a
given firm.
6. Objective Of Current Ratio
Current ratio is used
to measure how much collateral asset that belongs to the company to repay
short-term debt
7.
Ratio Analysis
and Quick Ratio are the parts of Financial Statement Analysis.
This
financial statement belong to PT Hexindo Adiperkasa Tbk.
For Conclusions
From the previous case
study, it can be concluded that the
} Financial
PT.Tower Bersama in 2011 showed that for every Rp 1 current liabilities
guaranteed by Rp1,3 current assets.
