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these ratios analyze how much cash a company has. a liquid company will have cash after its obligations are paid off. some of the ratios calculated here are:

a) Current ratio
Current ratio = Current assets / Current liabilities
b) Quick ratio
Quick ratio = Quick assets / Current liabilities
Quick assets = Current assets - Inventory
c) Cash ratio
Cash ratio = Cash / Current liabilities

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faizak292

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2y ago

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