Quick Ratio or Acid Test Ratio

A quick ratio or acid ratio determine the company ability to meet its short term obligation by converting current assets into cash at short period of time of one month. The need of quick ratio arise to measure the liquidity of the company more accurately by...

Current Ratio Analysis

The current ratio is very poplar liquidity ratio; it is used to determine the short term liquidity of the company means that enough current assets (Cash, prepaid Insurance, Cash equivalents, Account receivable and Inventory etc) are available with company to meet it...