Liquidity Ratios

Types of liquidity ratios

Learn various types of solvency ratios used as part of financial ratio analysis. Browse through the below resources.

Cash Ratio Formula

Cash ratio

What is Cash ratio? The cash ratio or cash coverage ratio is an important liquidity ratio which is closely related to Quick Ratio and Current Ratio. Analyzing cash ratio helps in identifying the liquidity position of the company purely in terms of cash and cash equivalents. Cash ratio Meaning Cash Ratio tries to build a …

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Current ratio formula

Current ratio

What is Current ratio? Understanding the current ratio formula is an important element of liquidity ratio analysis.  Liquidity ratios help us in understanding if the companies are in a better position to meet their short-term obligations. One of the most widely used and important liquidity ratio is the Current Ratio. Not only the ratio is …

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