Цій статті більше 3-х років. Українське законодавство складне і мінливе, тож на даний момент редакція не гарантує її 100% актуальність. У разі сумнівів скористайтесь пошуком, щоб читати свіжіші статті і консультації, або зверніться за допомогою до нашого ШІ-консультанта.
1. TASK: Insert the appropriate word in the text below:
collection - cover - efficiency - efficient
exceed - excess - health - indicates
owe - red flag - tied up - underlying
It is a measure of both a company's ___________ and its short-term financial ___________.
The working capital ratio (Current Assets/Current Liabilities) ___________ whether a company has enough short term assets to ___________ its short term debt. Anything below 1 indicates negative W/C (working capital). While anything over 2 means that the company is not investing ___________ assets. Most believe that a ratio between 1.2 and 2.0 is sufficient.
If a company's current assets do not ___________ its current liabilities, then it may run into trouble paying back creditors in the short term. The worst-case scenario is bankruptcy. A declining working capital ratio over a longer time period could also be a ___________ that requires further analysis. For example, it could be that the company's sales volumes are decreasing and, as a result, its accounts receivables number continues to get smaller and smaller. Working capital also gives investors an idea of the company's ___________ operational efficiency. Money that is ___________ in inventory or money that customers still owe to the company cannot be used to pay off any of the company's obligations. So, if a company is not operating in the most ___________ manner (slow collection), it will show up as an increase in the working capital. This can be seen by comparing the working capital from one period to another; slow ___________ may signal an underlying problem in the company's operations.
2. CHECK YOUR SPEAKING
|
efficiency |
[ıʹfıʃ(ə)nsı] |
эффективность |
|
health |
[helθ] |
здоровье, (финансовое) состояние |
|
indicates |
[ʹındıkeıt] |
показывать |
|
cover |
[ʹkʌvə] |
покрывать |
|
excess |
[ıkʹses] |
излишний, дополнительный |
|
exceed |
[ıkʹsi:d] |
превышать |
|
red flag |
[red] [flæg] |
сигнал опасности |
|
underlying |
[͵ʌndəʹlaııŋ] |
базовый, лежащий в основе |
|
tied up |
[taıd] [ʌp] |
замороженный |
|
owe |
[əʋ] |
быть должным |
|
efficient |
[ıʹfıʃ(ə)nt] |
эффективный |
|
collection |
[kəʹlekʃ(ə)n] |
сбор (задолженности) |
3. SEE CORRECT ANSWER
It is a measure of both a company's efficiency and its short-term financial health.
The working capital ratio (Current Assets/Current Liabilities) indicates whether a company has enough short term assets to cover its short term debt. Anything below 1 indicates negative W/C (working capital). While anything over 2 means that the company is not investing excess assets. Most believe that a ratio between 1.2 and 2.0 is sufficient.
If a company's current assets do not exceed its current liabilities, then it may run into trouble paying back creditors in the short term. The worst-case scenario is bankruptcy. A declining working capital ratio over a longer time period could also be a red flag that requires further analysis. For example, it could be that the company's sales volumes are decreasing and, as a result, its accounts receivables number continues to get smaller and smaller. Working capital also gives investors an idea of the company's underlying operational efficiency. Money that is tied up in inventory or money that customers still owe to the company cannot be used to pay off any of the company's obligations. So, if a company is not operating in the most efficient manner (slow collection), it will show up as an increase in the working capital. This can be seen by comparing the working capital from one period to another; slow collection may signal an underlying problem in the company's operations.
Цей та багато інших цікавих матеріалів Ви знайдете в
підручнику “Practical Financial English”
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