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An example of liquidity ratio is the?

Updated: 4/28/2022
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13y ago

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current ratio and acid test ratio are examples of liquidity ratios'. current ratio is current asset's/ current liabilities. acid test ratio is current assets- stock / current liabilities.

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13y ago
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Q: An example of liquidity ratio is the?
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Current ratio and liquidity ratio are same?

no they are not the same. the current ratio is current assets/current liabilities. but liquidity ratio or acid test ratio is current assets - stock/current liabilities. liquidity ratio shows you how able a business is to pay off its debt when stock is taken out of the equation.


What is the purpose of the liquidity ratio?

Liquidity ratios measure the availability of cash to pay debt


What is current Statutory Liquidity Ratio?

25%


What is the financial ratio used to assess a company's liquidity?

The quick ratio which equals total assets/total liabilities Answer: Liquidity Ratios are the ratios that can be used to measure the liquidity of a company. As a rule of the thumb, all companies must have good liquidity ratios. The four main ratios that fall under this category are: 1. Current Ratio or Working Capital Ratio 2. Acid-test Ratio or Quick Ratio 3. Cash Ratio 4. Operation Cash-flow ratio


Full form of SLR?

Statutory liquidity ratio


What is CLR rate of bank?

cash liquidity ratio


What is current Statutory Liquidity Ratio of India as on 1st feb 2011?

statutary liquidity ration currnetly is 25%


What is the slr ratio for bank?

SLR stands for Statutory Liquidity Ratio. Statutory Liquidity Ratio is the amount of liquid assets, such as cash, precious metals or other approved securities, that a financial institution must maintain as reserves other than the Cash with the Central Bank. The statutory liquidity ratio is a term most commonly used in India.


What are the types of liquidity ratios?

1) Statutory Liquid Ratio 2) Cash Reserve Ratio


What are the ratios in liquidity?

liquidity ratios include current ratio (which is current assets/current liabilities) and acid test (which is current assets- stock/current liabilities.) liquidity ratio's shows how good a business is a paying off its debts. hope this helps.


What ratios are critical in determining going concern?

liquidity ratio's


what is liquidity ratio analysis?

it is an analysis of liquidity of a company. a company that is liquid has surplus cash remaining even after it has fulfilled its obligations. in simple terms, a company which has cash after paying off liabilities is said to have good liquidity.