XACC 280 Week 7 DQ 1

Question:
Select three ratios, one from each category – liquidity, profitability, and solvency – you think are the most important.
Why do you consider these ratios important? Which internal and external users might be interested in these rations? Explain why.
Response 1
The current ratio is a liquidity ratio used to determine the ability of a company to pay debts for a small time frame. The current ratio is determined by dividing current assets by current liabilities.
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