| 66. |
|
Current
Ratio—Current assets divided by current
liabilities. A current ratio greater than 1:1 indicates
that cash
and assets with short term maturities are sufficient to meet a firm's short-term
obligations. |
| 67. |
|
Tangible
Net Worth—Total assets minus intangible
assets equals total tangible assets. Total tangible
assets minus
total liabilities equals tangible net worth. Represents the net value of the
corporation if it were liquidated. A
low or negative tangible net worth impacts a firm's ability to invest in new
opportunities, develop new products,
hire new employees, make other capital expenditures and handle stockholder redemption
obligations. |
| 68. |
|
Receivables/Payables
Ratio—Accounts receivable divided
by accounts payable. This ratio measures the collection
practices of an agency, with a lower ratio representing more timely collections
of those amounts due from
insureds. |
| 69. |
|
Aged
Receivables—Measures the length of
time that receivables are past due (over 60 days,
over 90 days) |
