what do you mean by "Liquidity ratio"?
Others answers (3)
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
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.
- Show More