how to calculate the Current Ratio, Liquid Ratio &
Operating Ratio

Answer Posted / 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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