how to calculate the Current Ratio, Liquid Ratio &
Operating Ratio
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Answer Posted / 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 |
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