Ratio Analysis
Ratio Analysis: MeaningRatio analysis is a technique for evaluating financial statements or, to say, for detailed analysis of the financial statements presented by the… Read Article
Liquidity Ratios
Cash to Income Ratio – Meaning, Formula, Example, and More
The Cash to Income Ratio is a liquidity ratio. This shows the relationship between the cash flow and a firm’s operating income. In other… Read Article
Importance of Ratio Analysis
Ratio Analysis: MeaningRatio Analysis is a method to understand the liquidity position, efficiency of operations, profitability position, and solvency of a business organization. It… Read Article
Interval Measure – Meaning, Importance, How to Calculate, Burn Rate and Defensive Interval Ratio
Interval Measure is a financial ratio that allows a company to understand the money it needs for its operations. And it helps understanding how… Read Article
Acid Test Ratio – Meaning, Formula, Interpretation, and Example
The acid test ratio, or the quick ratio, is a measure of liquidity. This ratio helps determine whether a company has enough liquidity to… Read Article
Defensive Interval Ratio
Defensive Interval Ratio (DIR): MeaningA defensive interval ratio (DIR) is very useful for measuring a company’s liquidity position. It measures a company’s ability to… Read Article
Liquidity Ratios
What are Liquidity Ratios?Liquidity ratios give an idea about a company’s ability to convert its assets into cash and pay its current liabilities with… Read Article
Advantages and Disadvantages of Current Ratio
The current ratio is one of the most helpful liquidity ratios in financial analysis as it helps to gauge the liquidity position of the business. In… Read Article
Advantages and Disadvantages of Acid Test Ratio
The acid test ratio is the ratio that measures the liquidity of a company and its ability to take care of its short-term liabilities.… Read Article
How to Reduce Current Ratio and Why?
The current ratio is one of the crucial financial ratios. It is a measure of the company’s liquidity, and hence it is important to… Read Article
How to Analyze (Interpret) and Improve Quick Ratio?
Companies calculate the quick ratio to handle the defects present in the current ratio. The acid-test ratio is a more progressive alternative to the… Read Article