Скачать или смотреть CURRENT RATIO & QUICK RATIO EXPLAINED| Formula & Calculation Example | Interpretation

Breakdown of the current and quick ratio, which form part of the liquidity ratios. Understanding these financial ratios is important so that you can assess the short term risk any business is facing.

The ratios give a good indication of the working capital management of a business and are closely monitored by all key stakeholders for eg. equity investors, banks (they might form part of the covenants) and the directors.

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