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Ratios can provide clues to the company's performance or financial situation. However, it will not show whether performance is good or bad. Ratio's require additional quantitative information for an informed analysis to be made.

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Q: What are the limitations of the current ratio?
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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 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.


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%


current ratio?

this ratio analyzes whether a company can pay off its short-term obligations using its current assets. generally, the ideal current ratio for a company is considered to be 2.00. current ratio is calculated using the following formula:Current ratio = Current assets / Current liabilities


What is the latest current ratio for FedEx?

Current Ratio (MRQ) is 1.57


What are the limitations of the protein efficiency ratio evaluation?

The limitations is a case that is of key importance, and that entails experienced attendance on


How do you calculate ratio?

current ratio = current assets / current liablities A ratio (in trig) is simply the division of two lengths. A tangent (in trig) is the ratio of the opposite and adjacent legs.