Liquidity ratios
ID:CVLQRT
Video Overview
Different categories of ratios exist, such as profitability ratios, liquidity ratios and solvency ratios. In this tutorial we will focus on liquidity ratios. Liquidity refers to our cash flow and our ability to meet short-term debt. It considers whether we have enough in current assets such as inventory, debtors and bank to generate the necessary cash to meet our current liabilities.
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