See Also:
Current Ratio Analysis
Quick Ratio Analysis
Financial Ratios
Current Liabilities
Debt Ratio Analysis

Net Cash Definition

The net cash formula is cash minus the liabilities. It is often used in business much lượt thích the current ratio. It determines a company’s ability vĩ đại pay off its obligations. You can also use it vĩ đại determine the amount of cash remaining after different transactions.

Net Cash Meaning

Net cash is generally used in testing for a company’s ability vĩ đại pay off its liabilities. Many investors use this because it is an easy measure and understand if an investment is suitable for taking on. If a company can pay off all or the majority of its liabilities with solely cash then the investment can be considered safe. Its ratio can also be used vĩ đại determine how much debt a company can take on vĩ đại tư vấn operations or projects. If a company is looking at transactions then it can tell how profitable those particular transactions are for the company. It can also tell whether or not it is suitable for a company vĩ đại continue going through those transactions.
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Net Cash