3 Liquidity Ratios You Should Know
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- เผยแพร่เมื่อ 21 ก.ค. 2024
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Liquidity Ratios help you assess if a business can meet its short-term obligations. In this video, I'll introduce you to three well-known Liquidity Ratios:
▪ Current Ratio: Also known as the Working Capital Ratio. This is the least conservative Liquidity Ratio. It's calculated by dividing Current Assets by Current Liabilities.
▪ Quick Ratio: Also known as the Acid-Test Ratio, it only considers Liquid Assets.
▪ Cash Ratio: This is the most conservative Liquidity Ratio. We can calculate the Cash Ratio by dividing Cash and Cash Equivalents by Current Liabilities.
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⏱️TIMESTAMPS
00:00 - Intro
00:34 - 1. Current Ratio
03:05 - 2. Quick Ratio
04:18 - 3. Cash Ratio
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I've rereleased this after fixing a typo which was kindly pointed out to me by @i2iwithhorses
⏱TIMESTAMPS
00:00 - Intro
00:34 - 1. Current Ratio
03:05 - 2. Quick Ratio
04:18 - 3. Cash Ratio
I should graduate soon, getting my degree in accounting. This channel has been a god send. Thank you.
If you have a patreon account, I'd support it.
That's great to hear! Good luck :)@@stevegovea1
Awesome video on liquidity ratios! Super important stuff for managing cash flow. Love how you've explained it so clearly.
Thanks, I'm glad you enjoyed it :)
So straight forward, loved it
Glad you enjoyed it :)
Thank you so much. Finally i completed entire playlist of 57 videos
Wow! Well done!!
Thank you I learned so much
Glad to hear it :)
Hey James! Thanks for this greatly informative video! Could you please make some more videos on corporate finance/financial management? I have just started learning about accounting and finance and your videos have been a beacon for me! I'm sure a lot of us would benefit if you made videos on corporate financing, investment and dividend decisions!
Thanks for your requests! I'll keep this in mind for future videos :)
Hi James, awesome video. Please also add the recommended level of liquid ratios and why? That would give a critical thinking for reasonableness.
Thanks for your request!
It's good to see you 😊
My request is please make a video on provision entry. Absolutely there are many different types of provision.
Thanks for your request!!
I like it. Please, make more videos for this series.
I plan to!
Amazing as always! Seeing as folks are making requests, have you covered MACRS depreciation on the channel? I find that one to be quite befuddling when I compare it to other more manageable depreciations.
Thanks for your request!
i love you so much these contents are golden ❤😣
Thanks, great to hear you're enjoying these :)
Thank you so much
You're very welcome :)
thank you so much
No problem :)
Can I ask if having a high earnings per share ratio ,does it indicates that the company is expanding?
You should do a video on amortization! ALL of your videos are awesome 😊
Thanks for your request!
@@AccountingStuff heck yeah! Also… I have a question about deferred revenue after watching your video on it (which is also awesome 😄) is there somewhere I can ask you a long winded question?
Hi James, what do you mean when you say most/least conservative?
The most conservative ratio carries the least risk. E.g. being able to cover Current Liabilities using Cash alone means that the business is less likely to default
Hello . May I ask question about current ratio . Prepaid expense is something we pay in advance, used to pay service bill, how it works to pay the liabilities, I'm curious about it . If you don't mind could you tell me . Thanks before😊
I explain how Prepaid Expenses work in this video: th-cam.com/video/RE7wrflFOGA/w-d-xo.html
Hey James, Can you do a video about MANUFACTURING ACCOUNTS , by the way, this video was great,THANKS
Thanks for your request :)
Can you do a video about accounting for receivables, especially valuation and disposition of accounts receivable ?
Thanks for your request!
Hello James, please do a video tutorial on how to report TikTok Shop earnings on Quickbooks! Thank you.
Thanks for your request!
Please make a video on activity ratios too❤
Thanks for your request!
Do you provide any discount code for financial poor students ? Im interested in financial ratio cheat sheet
You can use the code JAN30 to get an extra 30% off at the moment
@@AccountingStuff just bought it thnks
Thanks for your support!@@noor-rrr
which liability ratio to use when?
A topic for another video :)
Hi, Can you talk about Audit?
Thanks for your request!
The last sentence for cash ratio should have been only cash and NOT cash & cash equivalents?. Is that correct!.
It's cash and cash equivalents :)
Is this course is basic
This isn't a course. These are TH-cam videos that explain basic accounting topics
@@AccountingStuff okay! I need basic to advanced account video
Thanks for your request@@guruprasadchaudharya6024
Which jobs/jobsites should I look up to get an accounting job that does not require any relevant experience? I already graduated. Thanks! Jesus Christ loves you (John 3:16)!
That all depends on where you live so it's hard for me to say. Congrats on graduating and best of luck with the job hunt!
@@AccountingStuff Thank you!
Hi I contacted you on Instagram but got no response what’s the best way to contact you please 🙏
You can reach me here: accountingstuff.com/contact
@@AccountingStuff hi I’ve done that how long does it take to get a reply ?
@@AccountingStuff still no reply after a week 🤷♂️
@@AccountingStuff can I get a Reply please 🙏