Search

banner image

Opt In (Do Not Edit Here)

banner image

Liquidity Ratio

Liquidity Ratio:

It is also called as short-term ratio. This ratio helps to understand the liquidity in a business
which is the potential ability to meet current obligations. This ratio expresses the relationship
between current assets and current assets of the business concern during a particular
period. The following are the major liquidity ratio:

Liquidity Ratio
[Post Image Courtesy of DigitalArt at FreeDigitalPhotos.net]

Current Ratio = Current Assets / Current Liability

Quick Ratio = Quick Assets / Quick or Current Liability
Liquidity Ratio Liquidity Ratio Reviewed by Ikpokolo Francis on Saturday, February 25, 2017 Rating: 5

No comments:

Do you have any reasonable comments for this post ? Please feel free to drop them below using the comment box. We will moderate and publish them as soon as possible. Cheers !

Powered by Blogger.