Liquidity Ratios | How to Calculate the Liquid Capital & Current Ratio
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- เผยแพร่เมื่อ 8 ก.ค. 2024
- Ratio analysis is used to assess the financial performance of a business in key areas. Liquidity ratios are used to measure a businesses ability to pay off its short term obligations and suggest how liquid the business is.
This video identifies two liquidity ratios, the first being the Current ratio and the second the liquid capital ratio, also known as the acid test ratio.
It investigates where to find the information for these ratios on a statement of financial position and how to calculate these ratios in order to analyse the businesses liquidity.
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This is next level information. Why are more people not watching this? I guess thats why many businesses are failing. I think this is taking care of a lot of the problems that we are facing at our enterprise. Yes we have an enterprise :-)))))
Thank you for the kind words, really appreciate it. Hopefully your enterprise smashes it then 👍
Agrree
Just watched again after a year and this is quite easy now.
Thanks for the video as it helped me to understand the importance of ratios.
Thank you. Really happy it is still useful 😁
You're videos are really helpfull e thank you
You are welcome 😁
great video help to much thanks
Really glad we could help 😁
thank u sir
You're welcome, hope it helped.
the answer you got for current ratio, 1.25 : 1, please how did you get the 1? or is the liability always 1?
Hi Jane, yes the liabilities are always shown as 1 in the current ratio calculation. Hope that helps.
God i fucking love liquid capital ratios
🤭… us too
Isn't there a third type?
Liquid capital is often referred to as the acid test ratio. It will depend on your exam board what ratios are used for liquidity and what they are called.
Thank you
@@TwoTeachers