Finance / July 7, 2018 / Andi Barnett
Current liabilities are used to determine a company's ability to pay off its short-term obligations as they fall due. Current liabilities are used to evaluate the efficiency and short-term financial stability of a company. So, it is inferred that current liabilities are a measure of a company's level of liquidity.
An EBIT Margin is the operating earnings over operating sales. This margin allows investors to understand true business costs of running a company, because parts of a company's property, plant, and equipment will eventually need to be replaced as they get used, broken down, decayed, etc.
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