What do the liquidity ratios tell you in the financial analysis? 1. The capital structure of...
What do the liquidity ratios tell you in the financial analysis?
1. The capital structure of a company
2. The profitability of the company
3. The efficiency of inventory
4. The company’s ability to pay off debt obligations
5. Ratios analysis
Homework Answers
Liquidity ratios tell about the company's ability to pay off debt obligations.
It analyses the various current assets and liabilities of the company which can be converted to cash as and when needed.
It's an important consideration to creditors of the company, creditors look for liquidity ratio to determine the company's ability to pay off debt.
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