Absolute liquid ratio is calculated by using the following formula:Absolute liquid ratio = Absolute liquid assets / Current liabilitiesWhere absolute liquid assets = Cash + Bank + marketable securities.Example:From the following balance sheet calculate absolute liquid ratio:Liabilities $ Assets $ Share ...
Products Solutions Services Support About Lenovo Black Friday
This is an even more rigorous liquidity ratio than quick ratio. Here we measure the availability of cash and cash equivalents to meet the short-term commitment of the firm. We do not consider all current assets, only cash. Let us see the formula, ...