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QuestionsCategory: MiscellaneousFinancial flow chart
TENG FOOK SENG asked 3 years ago

Hi,
For the current ratio >= 0.6 and cash >= 0.5, does this apply to all business types and reits? Also where do you get this values of 0.6 and 0.5 as reference? Will this be change in future?
Thanks ahead.
 
 

1 Answers
Victor Chng answered 3 years ago

Hi Fook Seng,
 
Do note that the process in Investment quadrant cannot be use in REITs, bank and insurance as the ratio use to analyse is totally different. 
 
As for the amount of CR 0.6 and Cash 0.5, it is just a rough guide based on our experience. It is flexible and can be bend once you done the experience but if you are a beginner, my suggestion is stick to the guide until you are clear in understanding the business model of company.