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Liquidity Ratios Study Sheet

Rating: 3 stars
Used in Course: Used in course
Submitted by: Brenda Canning (Faculty), Jul 03, 2014

While this provides a basic background, it does not give sufficient information regarding the interpretation of the ratios. An example with the meaning of the solution would be helpful. For example, explaining that a current ratio of 1.5 means that for every dollar of current laibilities, the company has $1.50 of current assets which can be used to pay those debts.