The Current Ratio is a very important ratio for a small business like Green Lawn Landscaping. It is a key measure of the liquidity of the operations of a small business. In order to calculate the current ratio, the total current assets are divided by the total current liabilities. The resulting number shows how many times the current assets can cover its current liabilities. The higher the current ratio the greater the cushion between the current obligations of a Green Lawn Landscaping, and the firm's ability to pay them using their short term cash equivalent assets.
Here we can see that the current ratio for Green Lawn Landscaping are projected to be 117, 201 and 281 for the years 2016, 2017 and 2018 respectively. This of coursemeans that there will be plenty of liquidity for the business to meets its short term liabilities. Fortunately for Green Lawn Landscaping, the current liabilities are onlythe accounts payable which are projected to be $442, $506 and $581 for the three years respectively. The reason the current assets are projected to bea robust $52,095, $101,905 and $163,337 for each of the three years is that we are anticipating the business to generate a decent free cash flow which is the largestcomponent of the current assets. In the event this cash flow projection was to be affected by slower than anticipated sales, our cash position and therebythe projected current assets and resulting current asset ratio will certainly be affected negatively as well.
The Foundation Grant Directory is a free listing of sources for grants by state. Why not look if there is some free money out there for your business. Hey - you never know!
The Business Loan Application covers every item you will need in your loan package and tells you how to get approved for business loans.
Fire your loan broker and use our Free Business Loans Bank / Lender Directory to find every bank in the country lending to small businesses.