Screen of the Week 11/02/2010: Current Ratio
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
ABAnswers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Finance > Investing > Screen of the Week 11/02/2010: Current Ratio
Screen of the Week 11/02/2010: Current Ratio
Posted: Nov 02, 2010 |Comments: 0
|
]]>
This week, I’m focusing on another ratio to help gauge a company’s financial health: the Current Ratio. It’s calculated by dividing current assets by current liabilities. The higher the ratio, the better, meaning the company has more liquid assets to meet its short-term obligations. A ratio of 2 or more (meaning a company has at least twice as many short-term assets than short-term liabilities) is generally considered good.
Presently, the average current ratio for stocks in the S&P 500 is 1.82. BTW – the Medical sector has the best current ratio with a median of 2.68 while Finance still has the worst at 0.96.
How to Use
Screening for this is quite easy to do. It’s a ratio, so on any of our screeners, including the Research Wizard, you’d want to first go to Ratios. And then go to the Liquidity and Coverage section. From there, you’ll find an item called Current Ratio. That’s the one. As for what value to use, I prefer to compare a stock’s Current Ratio to the median for its Industry.
And in this week’s screen, we’re doing just that. We’ll also add in some other items to help us find sound companies with solid prospects for the future.
Screen Parameters
* Average Broker Rating = 1
(Only Strong Buys allowed.)
* Current Ratio > median for its respective X Industry
(Looking at the companies with the strongest liquid positions to meet their short-term financial obligations.)
* Current ratio > 2
(And at the very least, we want the companies to exceed the commonly held definition of good, which means greater than 2.)
* Projected 1 Yr. Growth Rate > median for its respective X Industry
(This means we’re looking for the companies with the best growth rates within their groups.)
* Projected 1 Yr. Growth Rate > 0
(And I only want positive projected growth rates.)
* Price >= $5
* Volume >= 100,000
Here are 5 stocks that passed this week’s screen:
BKI – Buckeye Technologies Inc.
BZ – Boise Inc.
CISG – CNinsure Inc.
IGTE – iGATE Corp.
STRI -STR Holdings, Inc.
Start using this financial strength ratio in your own screening to help you find the stocks best able to prosper during these tough financial times. Put these ideas and others to the test today. Sign up now for a two week trial to the Research Wizard and start screening and backtesting your strategies before your next trade.
Get started with your free trial today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Retrieved from “http://www.articlesbase.com/investing-articles/screen-of-the-week-11022010-current-ratio-3596268.html”
(ArticlesBase SC #3596268)
Watch your traffic increase just by submitting articles with us, click here to get started.
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Dirk van Dijk -
About the Author:
Dirk van Dijk, CFA is the Chief Equity Strategist for Zacks.com. With more than 25 years investment experience he has become a popular commentator appearing in the Wall Street Journal and on CNBC. Dirk is also the Editor in charge of the market-beating Zacks Strategic Investor service. For more information, visit http://www.zacks.com.
]]>
Questions and Answers
Ask our experts your Investing related questions here…
200 Characters left
Which is the Best Touch Screen Mobile in Current MArket having Good Camera and Music Feature Budget 150-250 USD
What are weekly ratios of adjusted closing prices ?
What are the odds of miscarriage at 11 weeks ?
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Article Tags:
bki, buckeye, technologies, bz, boise, cisg, cninsure, gte, igate, stri, str holdings, screening, stock, zacks
Latest Investing Articles
More from Dirk van Dijk
U.S. Market’s Remarkable Resilience! February 11, 2011
The U.S. stock market’s continuing strength in the face of so many global problems is truly remarkable, particularly with so many important global markets in fairly serious corrections since November and still hitting new lows in reaction to those problems.
By:
Sy Hardingl
Finance>
Investingl
Feb 11, 2011
Copper cracks $10,000/tonne in London
Copper once again broke its all-time record Thursday, surging to US$10,000 a tonne in London as jitters about a supply shortfall had major investors and investment funds grabbing up available inventories.
By:
Adie Brownl
Finance>
Investingl
Feb 11, 2011
Forex Trading Tips: Strategies for the Beginning Trader
These easy to follow and understand forex trading tips are meant for the beginning trader, but should not be a substitute for self education.
By:
Craig Thornburrowl
Finance>
Investingl
Feb 11, 2011
CFD Trading and Spread Betting Update: Equity markets erase early losses ahead of UK PPI
Which financial headlines are shaping trading on 11th February? Sean Power of spread betting and CFD trading provider City Index discusses news activity including a nervy opening to the day in the equity markets.
By:
cityindexl
Finance>
Investingl
Feb 11, 2011
Exchange Traded Funds Versus Mutual Funds
There was a time when financial advisors all agreed on one thing: invest in no-load mutual funds. These days, however, you don’t hear much about those anymore but you do hear a lot about exchange-traded funds or ETFs.
By:
John Parksl
Finance>
Investingl
Feb 11, 2011
Benefits Of 401k Rollover Rules
401k retirement plan was firstly introduced in 1978 by United States government. In earlier times people use to save money for their retirement by sticking a lifetime with a particular company. When you get retired, you will get a pension.
By:
Molly J Youngl
Finance>
Investingl
Feb 11, 2011
Indian Equity Witness From the Desk Of Editor By Mansukh
The respective Support and Resistance levels are: Resistance 5549.61, Pivot Point 5483.13 Support 5439.41. The Nifty Put Call Ratio (PCR) OI wise stood at 1.15 for February-month contracts.
By:
Shirish Shal
Finance>
Investingl
Feb 11, 2011
How To Go About Investing In Indian Stocks Step By Step
If you are thinking of investing in Indian stocks, you have thought it right! So, how will you proceed forward? Initially you may fall in a dilemma and what seemed so attractive from afar will only seem complicated. First you will have to open an online trading account and demat account.
By:
Nirmal Kumarl
Finance>
Investingl
Feb 11, 2011
Earnings Preview 2/04/11: Next week the fourth quarter earnings season is in full swing. A total of 492 firms are due to report, including 61 S&P 500 firms.
By:
Dirk van Dijkl
Finance>
Investingl
Feb 07, 2011
Earnings Preview 1/28/11. Next week the fourth quarter earnings season is in full swing.
By:
Dirk van Dijkl
Finance>
Investingl
Feb 01, 2011
Next week the fourth quarter earnings season is in full swing. A total of 481 firms are due to report, including 129 S&P 500 firms.
By:
Dirk van Dijkl
Finance>
Investingl
Jan 22, 2011
Earnings Season to Pick Up Steam
This week, the fourth quarter earnings season really starts to get rolling. A total of 128 firms are due to report, including 50 S&P 500 firms. We
By:
Dirk van Dijkl
Finance>
Investingl
Jan 18, 2011
Next week marks the semi-official start of fourth-quarter earnings season. Things will be getting off to a slow start, with only 37 firms due to report, but 6 of those will be S&P 500 firms.
By:
Dirk van Dijkl
Finance>
Investingl
Jan 10, 2011
The third quarter earnings season is over, and we will actually start to see a handful of fourth quarter reports next week, those with November fiscal ends.
By:
Dirk van Dijkl
Finance>
Investingl
Dec 13, 2010
The third quarter earnings season is now almost over; just a handful of stragglers, mostly October fiscal ends, are left to report.
By:
Dirk van Dijkl
Finance>
Investingl
Nov 22, 2010
The third quarter earnings season is now almost over, but the key word is “almost.” Next week, a total of 610 firms will report, but only 21 of those will be S&P 500 firms.
By:
Dirk van Dijkl
Finance>
Investingl
Nov 08, 2010
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Dirk van Dijk has 44 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.