ETRADE Financial Current Ratio vs. Gross Profit Fundamental Analysis
ETRADE Financial Corporation is rated # 5 in gross profit category among related companies. It is rated below average in current ratio category among related companies . The ratio of Gross Profit to Current Ratio for ETRADE Financial Corporation is about 2,324,786,325 Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
|Current Ratio ( times )|
Gross Profit varies significantly from one sector to another and tells investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e. Current Ration of 2 to 1).
ETRADE Financial Current Ratio Comparison
ETRADE Financial Fundamental Comparison