Posts Tagged short term finance

Liquidity ratios

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Liquidity ratios A liquidity ratio is a useful tool to determine the company short term financing position. The higher the value indicates company better liquidity position in other words company assets are valuable and can easily converted into cash.   Most common liquidity ratios are current ration quick ratio.   Current Ratio -                Current Assets/current Liabilities  The current ratio derives the results for company current assets divided by current liabilities. ... Full article
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