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Anonym

what do you mean by "Liquidity ratio"?

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    Liquidity is the ability of a firm to satisfy its short-term obligation as they become due for payment. It reflects the short-term solvency of the firm. The rations which indicates the liquidity of the firm are: 1. Net working capital 2.current ratios 3. acid test or quick ratio 4. super quick ratio

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    Anonym

    Liquidity ratio shows the company's ability of required cach bal. in calculating this ratio closing stock & bank over draft is to be not considered. so that this ratio is shows more clear picture about any of company than Current ratio.

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    Anonym

    in short....cash in hand, not in the forms of cheque, bonds etc

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