Liquidity Ratios Liquidity Ratios examine the capability of a company to repay both its current liabilities as they become due along with their long-term liabilities as they become current. In other words, Liquidity Ratios measure how quickly assets can be turned into cash in order to pay the company’s short-term debts. Liquidity is not only […]
Financial Ratio and its Analysis | Purpose | Importance | Formula | Uses
Financial Ratio Analysis Financial Ratios are mathematical assessments of financial statement accounts. Financial Ratio Analysis is performed by comparing two items in the financial statements. The resulting ratio can be interpreted in a way that is not possible when interpreting the items alone. In simple words, we are analyzing interrelationships. The connections between the financial […]