Current liquidity ratio
Current ratio (according to GUS terminology "liquidity ratio III") - ratio of current assets (current assets) to current liabilities (short-term liabilities). The current liquidity ratio indicates the potential for repayment of current liabilities by short-term assets. The desirable value of this indicator is generally related to the level of net working capital (current assets minus current liabilities) which should be greater than zero for safe-financing companies. The construction of this indicator is based on the same categories only that presented not in difference a in quotient. Therefore, it is expected that its value will be greater than 1. Despite the generally occurring norms for the value of this index, most often as a range between 1 and 2, it depends on the specificity of the industry. CR = current assets / short-term liabilities Bibliography
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