Caldor

Essay specific features

 

Issue:

Business

 

Written by:

John J

 

Date added:

February 26, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 701

 

Was viewed:

9346 times

 

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Essay content:

The implied current ratio of 1.022 was alarmingly low. As at end Jan 1995, quick ratio was a mere 0.05 as bulk of current assets was inventory being held on its books. With such a low quick ratio, it implies that Caldor might run into risk of not being able to fund their short-term debt using short-term assets if they are due...
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must maintain a period of at least 30 consecutive days during which no revolving credit borrowings are outstanding from period Dec 1 to Apr 15. The credit agreement also restricted Caldor in incurring additional indebtedness or sales of assets. This effectively restricts Caldor from using non-current assets or raising additional short/long term debt to fund their outstanding short term revolving debt in the space of a one year period...
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