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Zacks.com featured expert Kevin Matras highlights: Hexcel Corp., MDC Holdings, Inc., Mohawk Industries, Inc., Standard Pacific Corp. and TransDigm Group, Inc.

Kevin Matras

Chicago, IL – May 15, 2012 - Stocks in this week's article include Hexcel Corp. (NYSE: HXL), MDC Holdings, Inc. (NYSE: MDC), Mohawk Industries, Inc. (NYSE: MHK), Standard Pacific Corp. (NYSE: SPF) and TransDigm Group, Inc. (NYSE: TDG). Kevin Matras explains how to use the Current Ratio as a financial health barometer.

Screen of the Week written by Kevin Matras of Zacks Investment Research:

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 more liquid assets a company has 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 median current ratio for the stocks in the S&P 500 is 1.65.

In this week's screen, we'll use the Current Ratio as the main focus and add other logical items to produce a stock list of sound companies with solid prospects for the future.

For the rest of this Screen of the Week article, please visit Zacks.com at: http://www.zacks.com/commentary/21244/

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Read the analyst report on HXL

Read the analyst report on MDC

Read the analyst report on MHK

Read the analyst report on SPF

Read the analyst report on TDG

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