Red Robbin

LIQUIDITY RATIOS There are three main fluidity proportions in the study of financial management. These ratios examine the ability of a firm to pay off its debt if needed. The three ratios are the ongoing ratio, the quick ratio, and the cash ratio. RED ROBIN20092008 (Numbers in thousands) arrive incumbent assets 200955,205 50,088 Total current liabilities95,42292,183 Inventory14,52613,123 Cash20,26811,158 new Ratio:0.57850.5433 affectionate ratio:0.42630.4009 Cash ratio:0.21240.1210 McDonalds (numbers in millions) on-line(prenominal) assets3416.33517.6 Current liabilities2988.72537.9 Inventory106.20111.50 Cash17962063.4 Current ratio:1.1431.386 Quick Ratio:1.0171.342 Cash Ratio:0.6000.813 BURGERKING(numbers in millions) Current assets370.6404.0 Current liabilities482.3456.0 Inventory------ Cash121.7166.0 Current Ratio:0.7680.886 Quick Ratio:0.7680.886 Cash Ratio:0.2520.

364 Current ratio=current assets/current liabilities Quick ratio= (current assets-inventory)/current liabilities Cash ratio=cash/current liabilities NET WORKING CAPITAL meshing working capital is the difference between a play alongs current assets and current liabilities. It is obviously a purify position to have more assets than liabilities. When the debt/equity ratio grows higher(prenominal) than one the firm is in danger of bankruptcy. 20092008 Current assets55,20550,088 little current liabilities95,42292,183 Net working Capital(40,217)(42,095) Here florid Robin has increased their assets from 2008 to 2009 and reduced their liabilities; they are still in a poor financial position with more indebtedness than assets. PROFITABILITY RATIO The three profitability ratios used in the US are the profit margin, the return on assets, and the return on equity, the information used to calculate these ratios are fond in the financial... If you want to get a full essay, order it on our website: Ordercustompaper.com

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