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What is the purpose of the liquidity ratio?
Liquidity ratios measure the availability of cash to pay debt
Why is liquidity?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
Why is liquidity important?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
Would you expect net income to be a good measure of a company's liquidity?
Generally I would not use Net Income as a measure of liquidity. Net Income is a good measure of profitability, but it does not indicate a company's ability to meet short-term obligations. Some good measures of liquidity include working capital, the current ratio, and the quick ratio.
How might you measure a company's liquidity and short-term debt paying ability?
CALCULATE CURRENT RATION Type your answer here...
What is the purpose of the liquidity ratio?
Liquidity ratios measure the availability of cash to pay debt
Why is liquidity?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
Why is liquidity important?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
Would you expect net income to be a good measure of a company's liquidity?
Generally I would not use Net Income as a measure of liquidity. Net Income is a good measure of profitability, but it does not indicate a company's ability to meet short-term obligations. Some good measures of liquidity include working capital, the current ratio, and the quick ratio.
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 is the measure of how quickly an asset can be converted to cash?
Liquidity is the measure of how quickly an asset can be converted to cash. High liquidity means an asset can be quickly converted to cash with minimal price impact, while low liquidity implies it may take longer to convert the asset to cash and may require a discount in price to do so.
How fast and item can be turned into cash?
Liquidity is a measure of how quickly an asset can be turned into cash.
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 :)
How might you measure a company's liquidity and short-term debt paying ability?
CALCULATE CURRENT RATION Type your answer here...
Does Liquidity refers to the degree of readiness of conversion of an asset into common stock?
Yes it is True.... Xiv NORTE
Why might a profitable business face liquidity problems?
No liquidity
What is liquidity in financial system?
Liquidity is basically how much cash is available.
