Current Ratio Interpretation Example
Quick assets refer to the more liquid types of current assets which include. The current ratio is calculated as the current assets of Colgate divided by the current liability of Colgate. Advantages And Disadvantages Of Current Ratio Financial Analysis Accounting Books Accounting And Finance The current ratio formula below can be used to easily measure a companys liquidity. . A receivable turnover ratio of 2 would give an average collection period of 6 Months 12 Months 2 and similarly 6 would give 2 Months 12 Months 6. The formula is as follows. The ratio can be calculated as follows. Payable turnover ratio interpretation. The receivables turnover ratio is an absolute figure normally between 2 to 6. 4 Analysis and Interpretation. The cash flow coverage ratio is a liquidity ratio that measures a companys ability to pay off its obligations with its operating cash flows. As we have already understood PTR indic