Liquidity ratios, finance, Other Engineering

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Liquidity Ratios: The liquidity ratios of the company help in determining the ability of the company to convert its current or liquid assets readily into cash. Higher the ratios better the performance of the company in paying its short term obligations. The current ratio of the company has decreased by 0.1 times which is not a good indicator of the company’s sound liquidity position. The quick ratio has also decreased by 0.1 times. This is not a good indicator for hold over its liquid assets.

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