Liquidity and gearing ratios

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Current ratios
Measures relationship between current assets and current liabilities
1 of 5
Acid test ratios
Measures the businesses liquidity position by looking at current assets and liabilities (but omits stock)
2 of 5
Gearing ratios
Looks at the long term stability of the business and the risk of investment within the business
3 of 5
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4 of 5
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5 of 5

Other cards in this set

Card 2

Front

Acid test ratios

Back

Measures the businesses liquidity position by looking at current assets and liabilities (but omits stock)

Card 3

Front

Gearing ratios

Back

Preview of the front of card 3

Card 4

Front

-

Back

Preview of the front of card 4

Card 5

Front

-

Back

Preview of the front of card 5

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