Liquidity Ratios
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What are liquidity ratios and who are the primary users of the ratios? Why they are important from a relative comparison approach (explain)? How might an investor use liquidity ratios when making investment decisions for stocks and bonds only?
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Answer:
Liquidity ratios can be defined as the capability of firm or company to pay its current liability with the help of its liquid (current) asset.
The Liquid ...
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- MBA, Indian Institute of Finance
- Bsc, Madras University
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