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1) Statutory Liquid Ratio
2) Cash Reserve Ratio
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∙ 14y ago
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Types of ratios?
1 - Actiivty raios 2 - turnover ratios 3 - Profitability ratios 4 - Liquidity Ratios
What are some types of liquidity ratios?
current and quick ratios. The quick (acid test) ratio is a more accurate measure of liquidity because it excludes inventories.
What are liquidity ratios?
Liquidity refers to the ability of a borrower to pay his debts as and when they fall due. Good liquidity is a requirement of all companies especially banks and other financial institutions. Imagine going to your bank to withdraw cash and the cashier at the counter says, I don't have enough money in the branch come back later. It would be frustrating wouldn't it be? This would not happen if the bank had enough liquidity to meet its daily customer withdrawal needs. Ok, now coming back to the topic, 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
How ratios in ratio analysis are computed and used?
Ratio analysis is used to evaluate relationships among financial statements items; these ratios are used to identify trends overtime for one company or to compare two or more companies at a point in time. It focuses on three aspects of business: liquidity, profitability and solvency.
What is a liquidity order?
ORDER OF LIQUIDITY is when items on a balance sheet are listed in order of liquidity. After cash, the other current assets are listed in order of liquidity or nearness to cash (i.e. Accounts Receivable first, then Inventory).
types of liquidity ratios?
there are basically four types of liquidity ratios which companies calculate. they are:current ratioquick ratiocash ratioworking capital
What are the three types of ratios?
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
What are 3 types of ratios?
1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios
Types of ratios?
1 - Actiivty raios 2 - turnover ratios 3 - Profitability ratios 4 - Liquidity Ratios
What are some types of liquidity ratios?
current and quick ratios. The quick (acid test) ratio is a more accurate measure of liquidity because it excludes inventories.
How many types of ratio?
Generally, there are 4 types of finance ratios, (if thats what you want). (A) LIQUIDITY RATIO (B) LONG TERM SOLVENCY AND STABILITY RATIO (C) PROFITABILITY & EFFICENCY RATIOS (D) INVESTORS OR STOCK MARKET RATIOS.
What is the purpose of the liquidity ratio?
Liquidity ratios measure the availability of cash to pay debt
What ratios are critical in determining going concern?
liquidity ratio's
What are the Liquidity ratios?
measure of a firms ability to meet short term cash payments. bassically liquidity ratios show how good a business is at paying off its debts. hope this helps :)
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.
How are ratios classified?
Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.
Do liquidity ratios indicate how fast a firm can generate cash to pay bills?
Yes, Liquidity ratios indicate the firm's ability to fulfill its short term obligations like bill pay, etc. Yes, Liquidity ratios indicate the firm's ability to fulfill its short term obligations like bill pay, etc.
