how to calculate the Current Ratio, Liquid Ratio &
Operating Ratio
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Answer / jagan
1. Current ratio = current assets/ current liayabilities
(Current assets = cash, bank ,stock, Bill recevables
debtors)
(Current Liability = creditors, bank od balance,bills
payables)
2. liquid ratio = Liquid Assets/ Liquid Liabilites
(liquid Assets = All current assets except "Stock")
(Liquid Liabilities = All current liabilities
except "Bank od balance")
3. Operating ratio = Operating exp + cost goods sold /
sales*100
| Is This Answer Correct ? | 36 Yes | 8 No |
current ratio= current assets/current liabilities
current assets= cash in hand,cash in bank, closing
stock,sundry debtors,prepaid expenses
current liabilities= sundry creditors,outstanding
liabilities,prepaid recivable incomes
liquid ratio=current assets/quick liabilities
Operating ratio= Cost of goods sold/Net sales*100
| Is This Answer Correct ? | 14 Yes | 8 No |
Answer / azad khan
if current ratio=2.5 : 1
liquid ratio= 1:1
closing stock=rs 45000
calculate
current assets
current liabilities
liquid assets
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / gohar ali
operating ratio=cost of goods sold/net sales*100
| Is This Answer Correct ? | 8 Yes | 5 No |
Answer / bindu
Current ratio: current assets / current liabilities
Quick ratio : Quick assets (Current assets - stock) / quick
liabilities (Current liabilities - prepaid expenses)
Operating ratio : Operating expenses / net sales
Operating ratio shows management efficiency of company by
comparing operating expenses with net sales
| Is This Answer Correct ? | 6 Yes | 6 No |
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