Importance of financial ratios in the Rush Industry

Financial ratios give a user a good overview of the financial position of a firm under different categories. The main financial ratios are liquidity, profitability, market value ratios, efficiency ratios, and leverage ratios. Other financial statement users are interested in different classifications of ratios depending on their area of interest. From the key performance indicator analysis of Rush Industries ratio analysis, the two ratios that seem to be most significant are acid ratio and net profit margin ratios.
The acid test ratio, also known as the quick ratio, is a liquidity ratio that shows the liquidity position without using its stock. Liquidity refers to the ability of a firm to turn its short-term assets into cash for meeting short-term obligations. The acid ratio is a better measure of liquidity as it shows the liquidity position of the Rush industry without including stock. Stock is deducted from the current asset when computing this ratio, as supply is not highly liquid compared to the other short-term assets (Lalithchandra, 2021). Therefore, the ratio shows the actual liquidity position of the Industry at the time under analysis.
The net profit margin is a profitability ratio that shows a firm’s profit from its sales after eliminating all the expenses, taxes, and expenses incurred in the period (Nariswari

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 30% with the discount code GRADE