It gives an idea about company's financial health.
Current ratio <1 :
Liabilities are more as compared to assets and shows financial health of company is not good but we can't say it will necessarily go bankrupt.
Liabilities are more as compared to assets and shows financial health of company is not good but we can't say it will necessarily go bankrupt.
But still, a current ratio
below 1 is usually not a good sign.
Current ratio > 3 :
High current ratio does not guarantee company's good financials
2. Quick Ratio :
High quick ratio indicates a company is better able to meet its current obligations by making use of liquid
3. Beta
beta <1 implies stock is less volatile than the market.
beta >1 implies stock is more volatile than the market.
For example, if a stock's beta is 1.1, it is 10% more volatile than the market.
Current ratio > 3 :
High current ratio does not guarantee company's good financials
2. Quick Ratio :
High quick ratio indicates a company is better able to meet its current obligations by making use of liquid
3. Beta
beta <1 implies stock is less volatile than the market.
beta >1 implies stock is more volatile than the market.
For example, if a stock's beta is 1.1, it is 10% more volatile than the market.
No comments:
Post a Comment