Page 8 - T.T. FINANTIAL

FINANTIAL TERMS

• CURRENT LIABILITIES: Liabilities that must be paid within a year.
• CURRENT RATIO: The worth of a company (contained as current assets,
including cash, accounts receivable and inventory,) divided

by current financial liabilities, including all short-term
debts (this ratio roughly measures a company’s financial
risk: logocally, the more the financial liabilities, the riskier
the company. Thus, small current ratios indicate high risk.)
• CURRENT YIELD: The amount producer by dividing the manual income, both
from interest and dividends, by the current price of the
security (Stocks do not gain interest; the current yield for
stocks is equal to the divident yield.)
• CYCLICAL INDUSTRY: An industry whose success is closely linked to the rise
and fall of the general economy (The auto industry is a
cyclical industry.)

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