Which of the following financial ratios shows the company's liquidity
Asked by maham237 @ in Business viewed by 286 People
A.Debt to equity ratio
B.Current ratio
C.Debt ratio
D.Return on equity
Answered by maham237 @
The B) Current ratio shows the company's liquidity. The current ratio calculated by dividing company's amount of current asset by company's current liability. This ratio shows the ability of a company's current asset to meet its current liability. Managers usually use benchmarks for the similar industry in analyzing this ratio.
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