Liquidity - Ratios Flashcards
1
Q
Current ratio
A
Current assets / current liabilities
2
Q
Quick ratio
A
(Cash + Short-term investments + AR) / current liabilities
3
Q
Cash ratio
A
(Cash / current liabilities)
Current ratio
Current assets / current liabilities
Quick ratio
(Cash + Short-term investments + AR) / current liabilities
Cash ratio
(Cash / current liabilities)