Azerbaijan state economics university
BP’s quick ratio table above indicates an increasing trend in meeting the current obligation without using the prepayment as well as the inventories. BP’s increasing trend shows an average of 0.76 in 2010 and 2011 while increasing to 0.82 to 0.91 in 2012 and 2013 financial years[ CITATION Cha10 \l 1033 ]. The increasing financial ability to meet the current liabilities without utilizing the stock as well as prepayment indicates that company management executives has substantiated effective measures over the year in ensuring that there is enough cash to meet the current obligations. Capital Structure RatioBP capital structure ratio measures the ability of the company to sustain its activity in the long run. This ratio accentuates the firm’s ability in payment of its obligation in the long term to enable its sustainability in the business[ CITATION Cho08 \l 1033 ]. When the company has a better capital structure ratio, it will indicate that the firm is creditworthy and also financially sound in the long term. Yüklə 109,67 Kb. Dostları ilə paylaş: |