4 Common Liquidity Ratios in Accounting
One way a business can manage its books and viability in the near and long terms is to see how liquid its assets are. Businesses that have better cash positions are naturally geared toward sustaining continued success. One important reason for a business to measure and maintain healthy levels of liquidity is because it promotes better odds that a company will be able to satisfy its short-term debts. There are many ways business can accomplish this, and below are four common ways it can be done. Current Ratio One of the few liquidity ratios is what’s known as the current ratio. It’s a wayRead More →