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

Accounting Auditing Financial Reporting Economics
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Question ajoutée par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date de publication: 2016/04/26
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Shahbaz Hayder
par 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
par 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
par 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.

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