1. What is the appropriate current ratio?
Liquidity ratio is an important index to measure a company's financial situation and operating ability, which ca
1. What is the appropriate current ratio?
Liquidity ratio is an important index to measure a company's financial situation and operating ability, which can reflect the company's liquidity ability and operating status. So, what is the appropriate current ratio?
Second, the definition of current ratio
The current ratio is an index to measure the liquidity ability of an enterprise, and its calculation formula is: current ratio = current assets/current liabilities. Current assets include cash, deposits, accounts receivable and inventory. Current liabilities include short-term loans, accounts payable and short-term accounts received in advance.
Three. Current ratio reference standard
The reference standard of current ratio is generally 2: 1~3: 1, that is to say, a company's current assets must be greater than or equal to 2 to 3 times its current liabilities to be reasonable.
Fourth, the reasons for the low current ratio
There are many reasons for the low current ratio, such as the company's excessive current liabilities, insufficient current assets, and the company's lack of capital investment management capabilities.
How verb (verb's abbreviation) can improve the current ratio.
To improve the current ratio, we should start from several aspects: first, reasonably control the company's current liabilities and avoid increasing them as much as possible; Secondly, we should improve the utilization rate of current assets and make full use of cash, deposits, accounts receivable and inventory; It is necessary to strengthen fund management and rationally use cash flow to improve the company's liquidity ratio.
Abstract of intransitive verbs
In short, the current ratio is an important indicator to measure a company's financial situation and operational capacity. In general, the flow ratio should be kept between 2: 1 and 3: 1. To improve the current ratio, it is necessary to strengthen fund management, control current liabilities and improve the utilization rate of current assets.