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liquidity ratio's are important to shareholders because in a way the ratio's show them if the business is worth investing in. if a business has bad liquidity ratios because they ant payy off their debts, people are less likely to invest because they have they don't wnat to pay off other people debts. the ratio that shareholders are really interest in is return on capital employed because it shows how the net profit is distributed.
What else can I help you with?
What is the purpose of the liquidity ratio?
Liquidity ratios measure the availability of cash to pay debt
What is current Statutory Liquidity Ratio?
25%
What is CLR rate of bank?
cash liquidity ratio
What is the slr ratio for bank?
SLR stands for Statutory Liquidity Ratio. Statutory Liquidity Ratio is the amount of liquid assets, such as cash, precious metals or other approved securities, that a financial institution must maintain as reserves other than the Cash with the Central Bank. The statutory liquidity ratio is a term most commonly used in India.
What is the definition of a liquidity ratio?
Liquidity ratio are designed to test a company's ability to meet its short-term financial obligations. To find the ratio, you take Cash and Cash Equivalent + Marketable Securities + Accounts Receivable divided by Current Liabilities.
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 purpose of the liquidity ratio?
Liquidity ratios measure the availability of cash to pay debt
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.
What is current Statutory Liquidity Ratio?
25%
What is the financial ratio used to assess a company's liquidity?
The quick ratio which equals total assets/total liabilities Answer: 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
Full form of SLR?
Statutory liquidity ratio
What is CLR rate of bank?
cash liquidity ratio
What is current Statutory Liquidity Ratio of India as on 1st feb 2011?
statutary liquidity ration currnetly is 25%
What is the slr ratio for bank?
SLR stands for Statutory Liquidity Ratio. Statutory Liquidity Ratio is the amount of liquid assets, such as cash, precious metals or other approved securities, that a financial institution must maintain as reserves other than the Cash with the Central Bank. The statutory liquidity ratio is a term most commonly used in India.
What are the types of liquidity ratios?
1) Statutory Liquid Ratio 2) Cash Reserve Ratio
What ratios are critical in determining going concern?
liquidity ratio's
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.
