Question
here are 4 main groupings of ratios. In your opinion, which of the ratios are most important? Also, why is it important to perform a
here are 4 main groupings of ratios. In your opinion, which of the ratios are most important? Also, why is it important to perform a trend analysis of the ratios over a period of years?
- Liquidity Ratios
2. Current ratio = Current assets/current liabilities
3. Quick ratio = (Current assets-Inventories)/current liabilities
4. Cash Ratio = (Cash + Marketable Securities) / Current Liabilities
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Basic Finance An Introduction to Financial Institutions, Investments and Management
Authors: Herbert B. Mayo
11th Edition
1285425790, 1285425795, 9781305464988 , 978-1285425795
