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Q: Can Banks have a negative current ratio?
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Banks current ratio should be how much?

The ideal current ratio for banks 1.33 : 1


What are the most five important ratios for banks?

current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio


How do you get a current ratio?

Formula for current ratio is as follows: Current ratio = Current assets / current liabilities


What is a measure of liquidity?

the two ratios that measure liquidity is acid test and current ratio. the acid test ratio is current assets- stock/ current liabilities the current ratio is current assets/ current liabilities


An example of liquidity ratio is the?

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.


The ratio of current assets to current liabilities is called the?

The ratio between current assets to current liability is called "Current Ratio".


What is the equation for current ratio?

Current Ratio = Current Assets / Current Liabilities


What is statutory liqudity ratio?

Statutory liqudity ratio means all the banks maintained it in the form of cash in hand (exclusive of the minimum cash reserve ratio),Current account balances with SBI and other public sector commercial banks, unencumbered approved securities and gold. RBI prescribes SLR from 25% to 40%.


What is the formula for current ratio?

current ratio = current asset divided by current liability


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.


Is cash regardless of whether if has a positive or negative balance a current assets?

No. It will be kept with the assets within computer accounts packages but when the final accounts are produced the banks are split. Any with positive balances stay in current assets, and any with a negative balance will be put into current liabilities.


What is the current ratio if cash is 8000 accounts payable is 2000 and stocks worth 2000?

Current ratio = current assets / current liabilityCurrent ratio = 10000 / 2000current ratio = 500%