Current Ratio Analysis
Current ratio analysis, along with the acid-test ratio, measures liquidity. Liquidity refers to the ability of the firm to meet its short-term obligations (obligations over the next 12 months) with its...
View ArticleAcid-Test Ratio
The acid-test ratio, along with the current ratio analysis, measures liquidity. Liquidity refers to the ability of the firm to meet its short-term obligations (obligations over the next 12 months) with...
View ArticleOverview of financial ratios
Liquidity ratios Current ratios measure liquidity, which refers to the ability of the firm to meet its short-term debt obligations. The formula for current ratio is as follows: Current ratio=Current...
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