Financial Ratio

Quick Ratio – Meaning, Formula, Ideal quick ratio

Meaning of Quick Ratio Quick Ratio is also known as the “Acid-test Ratio” and it is considered as the best measure of a company’s short-term liquidity position. The quick ratio also indicates the company’s ability to quickly convert its current assets (Except Inventories) into cash and pay off the current liability of the organization. Quick …

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Current Ratio – Meaning, Formula, Standard/Ideal current ratio, Significance

Meaning of Current Ratio The current ratio is the most widely used liquidity ratio which will help you to evaluate the short-term solvency of the business. If you are a creditor or lender of the organization, you can use the Current ratio to evaluate the repayment ability of the business, and also it will help …

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