Current ratio is the ratio of current assets to current liabilities. The higher the current ratio, the greater the liquidity of assets and the stronger the short-term solvency of enterprises. Quick ratio is the ratio of quick assets to current liabilities. Too high quick ratio means that enterprises occupy too much money on quick assets, which is easy to increase the opportunity cost of enterprise investment.
Analysis of several commonly used financial indicators. 1, liquidity ratio?
Liquidity is the ability of an enterprise to generate cash, which depends on the number of current assets that can be converted into cash in the near future. ?
(1) current ratio?
Formula: current ratio = total current assets/total current liabilities?
Standard value set by the enterprise: 2?
Significance: Reflect the ability of enterprises to repay short-term debts. The more current assets, the less short-term debt, the greater the current ratio, and the stronger the short-term solvency of enterprises. ?
The analysis shows that the short-term risk of corporate debt is greater when it is lower than normal. Generally speaking, business cycle, the amount of accounts receivable in current assets and inventory turnover rate are the main factors affecting the current ratio. ?
(2) Quick ratio?
Formula: quick ratio = (total current assets-inventory)/total current liabilities?
Conservative quick ratio =0