Financial Ratio
There are 5 groups outlined ratio, among others:
1. Liquidity
2. Leverage Ratio
3. Profitability
4. Activities Ratio
5. Market ratio
for the first opportunity I will to trying illustration Liquidity Ratio, and other Ratio for a next time.
A. Liquidity Ratio
Liquidity ratio is the ratio that describes how a company's position in ensuring the smooth obligations. Company is good if this more liquid. But if too much liquid was also not good because the company will fund the unemployed. The less liquid companies were also not very good because it feared the company would not be able to pay obligation that is due.
- 1) Current Ratio
Current ratio=Current assets/Current debt
- 2) Acid Test Ratio
Acid Test Ratio= (Current assets-Inventory)/Current debt
