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2 cards from this section. Quick, good the night before a test.
What is the formula for the Current Ratio?
Think about how we measure short-term obligations.
What do Liquidity Ratios measure?
Consider what a business needs to pay in the short term.
What is the ideal Current Ratio?
Think about healthy financial ratios.
True or False: Ratio Analysis is mainly qualitative.
Reflect on what type of data ratios use.
A company has a current assets total of ₹300,000 and current liabilities of ₹150,000. Calculate both the Current Ratio and the Quick Ratio if the inventory is ₹50,000.
Use the formulas for each ratio.
If a firm has a Debt-Equity Ratio of 0.5 and its equity is ₹80,000, what is its total debt?
Apply the debt-equity formula correctly.
4 more questions in this section. Enroll free to practise them all.
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