What is Liquidity Ratio?

Answer Posted / mehraj wani

by the term Liquidity we mean " to meet current
obligations", since the currenet obligations can only be
met with the ready cash or near cash instruments like guilt-
edged securities.

Liquidity Ratio can be defined as:
Current Assets - Inventories / Current Liabilities

Is This Answer Correct ?    0 Yes 1 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What is fixed assets turnover ratio? What does it indicate?

635


Define Beta.

820


Explain what is the difference between equity financing and debt financing?

662


Tell me the characteristics of a hands-on BSA?

781


What do you know about NITI Aayog?

655






Iam a MBA 1st sem student so how do fase the campus interview which books i study

1769


Where are the UNICEF headquarters located?

594


What idea do you have about the Banking Industry?

658


What is the basic difference between recruitment and selection process?

638


How Will You Decide The Residential Status Of An Individual?

574


Tell us something important to you?

651


What is HDI? How is it calculated?

687


What is 'current deposit account'?

624


Where are the headquarters of Indian Government Banks?

624


How many number of SBI branches are present in India?

674