Ratio analysis
This query is : Resolved
26 May 2015
Hi sir
current ratio minus liquid ratio=what?
27 May 2015
Current ratio - liquid ratio = stock.
Denominator for both ratios is generally taken as current liabilities (assuming no bank o/d). Hence, difference in numerator amounts to stock.
Denominator for both ratios is generally taken as current liabilities (assuming no bank o/d). Hence, difference in numerator amounts to stock.
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