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Bank Promotion Exams |
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Liquidity Ratios Liquidity ratios analyze the ability of a company to pay off both its current liabilities as they become due as well as their long-term liabilities as they become current. In other words, these ratios show the cash levels of a company and the ability to turn other assets into cash to pay off liabilities and other current obligations. Most common liquidity ratios are : Quick Ratio or Acid Test Ratio Current Ratio or Working Capital Ratio ..................................................... |