Business Studies, asked by Amihan6379, 1 year ago

Name any five ratios used for analysing the liquidity position of a firm

Answers

Answered by basasriramamurthy26
0
The formula is: Current Ratio = Current Assets/Current Liabilities. This means that the firm can meet its current short-term debt obligations 1.311 times over. In order to stay solvent, the firm must have a current ratio of at least 1.0 X, which means it can exactly meet its current debt obligations.
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