Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What are two key ratios to assess a company's liquidity?

Accounting Auditing Financial Reporting Economics
user-image
Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/04/26
Upvote (0) Views (2) Followers (3) Answers (3) Report Question
Write an Answer
Register now or log in to answer.
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

The two important liquidity ratios are:

 

Current ratio (or Quick ratio a variation of the Current ratio) and the Operating cash flow ratio.

Mohammed Shahsad
by Mohammed Shahsad , Freelance Travel Consultant , Freelancing

I do believe in Current Ratio or Liquidity Ratio and Quick Ratio. These ratios helps to assess company's liquidity.

Dasarathi Rath
by Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC

Liquidity Ratio :- Traditionally two Ratio are used high light the business liquidity. These are CURRENT RATIO & QUICK RATIO. Other ratio include cash ratio, interval measure ratio and net working capital Ratio.

Write Your Answer
More Questions Like This