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Compares current assets to current liabilities
- Current ratio: This ratio compares current assets to current liabilities. A higher current ratio indicates a strong ability to cover short-term obligations. For example, if a property has $500,000 in current assets and $200,000 in current liabilities, the current ratio is 2.5, suggesting good liquidity.
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Aug 16, 2024 · The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize...
- Jason Fernando
- 1 min
Sep 13, 2024 · What is a good current ratio for real estate properties? A good current ratio typically ranges from 1.5 to 2.0, indicating that a property has sufficient current assets to cover its current liabilities. However, the ideal ratio can vary based on the property type and market conditions.
- 46 min
- Net Operating Income (NOI) NOI tells you how much money you make from a given investment property. It’s a version of a high-level income statement. To calculate it, take your total income and subtract operating expenses.
- Capitalization Rate (Cap Rate) Cap rate is the real estate equivalent of the stock market’s return on investment. It’s the ratio between the amount of income produced by a property to the original capital invested (or its current value).
- Internal Rate of Return (IRR) IRR estimates the interest you’ll earn on each dollar invested in a rental property over its holding period. It’s the rate of growth that a property has the potential to generate.
- Cash Flow. Cash flow is a sign of how well your business is – or isn’t – doing. It’s your net cash left at the end of the month after you’ve received your rents and paid your expenses.
May 16, 2024 · The Current Ratio is a financial metric that shines a spotlight on a company’s short-term liquidity and ability to meet its immediate obligations. It’s a crucial tool for investors and ...
Apr 16, 2023 · Current Ratio Definition. The current ratio is a liquidity ratio that is used to calculate a company's ability to meet its short-term debt and obligations, or those due in a single year, using assets available on its balance sheet. It is also known as working capital ratio.
May 25, 2021 · The current ratio is a commonly-used financial ratio. It tells investors and analysts whether a company is able to pay its current liabilities with its current assets (typically within a 12-month period).
Aug 10, 2023 · Current ratio is a metric that gives an idea of a company’s financial health. It is calculated by comparing its current assets to its current liabilities, giving an idea of how easily the company is able to pay off its short-term debt. A ratio of less than 1 means that the firm has more liabilities than assets.