The current ratio is the ratio between the current assets of an enterprise and the current liability, which measures the ability of the firm's current assets to be converted into cash before short-term debt matures and used to service its debts. It is one of the important financial indicators to measure the short-term solvency of enterprises, the higher the ratio, the stronger the ability of enterprises to repay short-term debt.<br>(2) Speed ratio. The quick ratio is the ratio between the rapid assets and the current liability of the enterprise, usually the rapid ratio of 1 is considered to be normal, if the speed ratio is less than 1 will be considered to be low short-term solvency, but because of the different business esquires in various industries, the speed ratio will fluctuate between.<br>(3) Cash ratio. The cash ratio is the ratio between the cash and cash assets of the enterprise, the community all sectors of society think that the cash ratio is the most reliable measure of the ability to repay the debt of the enterprise, it best reflects the ability of the enterprise to pay the current liability directly, the greater the ratio, the stronger the solvency of the enterprise, the greater the chance of a smooth passage through the crisis.
正在翻译中..