Financial Statement Analysis

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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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payable turnover ratio formula

Payable turnover ratio

What is Payable turnover ratio ? As part of financial ratio analysis, activity ratios play an important role. These ratios help in understanding the efficiency at which the company utilizes the resources. Similarly, another important activity ratio is the Payable turnover ratio. Let us understand about this turnover ratio in-depth. Payable turnover ratio meaning As …

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