Provide formulas of liquidity ratio, profitability ratio and profitability ratio with examples
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A higher quick ratio means a more liquid current position. The formula for calculating a company's quick ratio is: (Cash equivalents + marketable securities + accounts receivables) divided by current liabilities.
Profitability Ratio with Formula and examples. Profitability ratio is used to evaluate the company's ability to generate income as compared to its expenses and other cost associated with the generation of income during a particular period. This ratio represents the final result of the company
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