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Re: orangeslices445 post# 20658

Tuesday, 03/29/2011 8:56:05 AM

Tuesday, March 29, 2011 8:56:05 AM

Post# of 66256
Wrong, robots - Assets to liabilities is not always 1:1. A healthy company's assets, particurlarly its current assets (cash, receivables) should normally be a multiple of it's liabilities. Depending on industry and financial health, the ratio of assets to liabilities can vary greatly, and can even, in some cases, drop below 1:1. The difference between the two is equity, and is a driver of the company's value.