Why is liquidity ratio important?

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: What are the advantages of balance sheet?

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: Liquid ratio formula?

A: Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: Define Liquidity Analysis?

A: Liquidity analysis is very essential as it shows the ability of the firm in paying short-term bills.…

Q: What are the different liquidity tools?

A: Liquid assets are those assets which are either in cash form or can be converted into cash into…

Q: What is liquidity premium (LP)?

A: Answer: Interest rate theory on liquidity premium is a significant concept in bond investment. It…

Q: Discuss the importance and differences of liquidity, solvency and profitability.

A: Liquidity is the ability to turn an asset into cash or cash equivalent with ease. Solvency is the…

Q: What do the Liquidity ratios show?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What is the importance of liquidity?

A: Introduction: Liquidity is nothing but the ability of the bank to turn money into cash and to be…

Q: What is liquidity (security)?

A: Introduction: Liquidity is associated to rapid access to cash. Persons hold assets or security, and…

Q: Calculate the liquidity ratios and current ratios?

A: Liquidity ratios include quick ratio, current ratio, and cash ratio. The Quick ratio is the…

Q: why is there a trade-off between liquidity and solvency?

A: A firm may raise capital through different sources, including equity shares, preference shares,…

Q: do you understand by the term "Liquidity Management". Why is important ?

A: in organisation company have large amount money held in different forms assets but it takes time to…

Q: How does measure liquidity?

A: The transactions of the company will be analyzed by the management, and it will be recorded in…

Q: What caused the increase in liquidity ratios??

A: Liquidity ratios use metrics such as the quick ratio, current ratio, and operating cash flow ratio…

Q: What is liquidity?

A: Cash is said to be the most liquid asset of the business. Assets are said to be highly liquid if…

Q: Why is ratio analysis so significant?

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: P/E Ratios and Bubbles?

A: Price Earning ratio shows the relationship between price of the company's share with Earning per…

Q: liquidity ratio

A: INTRODUCTION   It is a ratio which the capability of a company to pay off its debts as and when they…

Q: VOLTAMP ENERGY SAOG Interim Report for the period ended 30th June, 2020 Unaudited condensed interim…

A: Current Ratio = Total Current Assets / Total Current Liabilities Liquidity Ratio = [Total Current…

Q: compare and contrast liquidity ratio and solvency ratio

A: The ratio is used to determine the relationship between two sums. In accounting, ratios are used to…

Q: hat is liquidity, and what is the rationale for its measuremen

A: Liquidity is very important for the business and smooth operating of the business and without…

Q: How is balance sheet important?

A: The balance sheet is one of the most important financial statements of the business as it is used to…

Q: Define liquidity and explain why it is important.

A: Liquidy is the ability of company  to pay short term liabilities by quickly converting assets or…