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<br />R" <br />U <br />C <br />G <br />n <br />8 <br />[ <br />[ <br />[ <br />o <br />I'E <br /> <br />I[ <br />10 <br />'B <br /> <br />~ <br />6 <br />I~ <br />IE <br />'Bl <br />I ' <br /> <br />, <br /> <br /> <br />city of Centerville <br />May 3, 2007 <br />Page Fifteen <br /> <br />Current Ratio (Liquidity Ratio) <br /> <br /> <br />The cmrent ratio is a comparison of a city's cmrent assets to its current liabilities. The curr <br />abiliiy to meet short-term debt obligations. Acceptable current ratios vary from industry <br />and 2 ~ considered standard. If a city's current assets are in this range, then it is gen <br />financial strength. If current liabilities exceed current assets (the current ratio is <br />meeting its short-term obligations. <br /> <br />~ an indication of a city's <br />, but a current ratio between 1 <br />to have good short-term <br />city may have problems <br /> <br />35.0 <br />30.0 <br />25.0 <br />20.0 <br />15.0 <br />10.0 <br />5.0 <br /> <br />,.;if;> <br /> <br />6.0 <br />2004 <br /> <br />2006 <br /> <br />to its total assets or the percentage of total assets that <br />are financed through borrowings and other long-term <br />are financing with outstanding debt). <br /> <br />3 <br />32% 34% <br />30% <br /> '"., <br />28% 294'''' <br />26% 27% <br />24% <br />22% <br />20% <br /> <br /> <br />2004 <br /> <br />2005 <br /> <br />2006 <br /> <br />I ~.City ratio .....Peer group average I <br /> <br />952.835.9090 · Fax 952.835.3261 <br />www.aemcpas.com <br />