Liquid ratios

Liquidity Ratios * Current ratio = Current assets / Current liabilities 1.10 = 75,101/68,391 The current ratio measures a company's ability to pay off short-term liabilities with current assets: » Acid-test ratio = Current assets — Inventories / Current liabilities 0.85=(75,101-17,174) / 68,391 The acid-test ratio measures a company's ability to pay off short-term liabilities with quick assets: * Cash ratio = Cash and Cash equivalents / Current Liabilities 0.46 =31,750/ 68,391 The cash ratio measures a company's ability to pay off short-term liabilities with cash and cash equivalents: » Operating cash flow ratio = Operating cash flow / Current liabilities 0.52=352322 /68,391 The operating cash flow ratio is a measure of the number of times a company can pay off current liabilities with the cash generated in a given period: