Huffman Trucking Current Financial Position

Liquidity Ratio This take symbolizes the touristed financial dimension hold to test a go withs liquidity by deriving the portion of reliables assets addressable to cover certain liabilities. This principle consists of dividing the accredited assets by the menses liabilities. In the case of Huffman Trucking, the menstruation assets represent $ 111, 728; rate of flow liabilities represent $ 88, 827. When applying the formula, the real symmetry comes collapse through to 1.3. This formula is called the on-going ratio. This number measures the short enclosure power to pay maturing obligations (Weygandt, Kimmel, & Kieso, 2010) and to envision unexpected needs for cash. This ratio is a more serious than a working cracking ratio. after review of this ratio, it seems as though there seems to be a lack of current assets to signify a whole ratio in our opinion. We exhort reducing current liabilities in coiffe to obtain a healthier ratio. This could be through by perhaps drop in a spacious term liability influx of cash to boost the current assets or reducing the current liabilities. Profitability Ratio For this ara, we opted to use the guide on assets ratio. Return on assets is a measure of how in effect the self-coloreds assets are being used to bring lolly (Weygandt, Kimmel, & Kieso, 2010).

Return on assets is reason by dividing terminal income by medium assets. by and by doing the calculations, we took $ 19,211 by $ 220,003 ( number for the past devil years). We obtained an average of 8.7%. We feel this is high than the industry average save not as sober as it could be. Landstar Systems has an average of 15.36 (YCharts, July 2010). This is high, only when we would recommend striving for a double digit average on this ratio. Solvency Ratio For the solvency ratio, we opted to look at that debt to conglomeration assets ratio. This formula is calculated by dividing total debt (both current and long-term liabilities) by total assets. This number will move over indicate the companys pointedness of leverage. Currently,...If you want to choose a full essay, battle array it on our website: Ordercustompaper.com

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