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  • Ratio Analysis of Tata Chemicals: 1. CURRENT RATIO Current Asset/Current Liability

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    Diksha Taneja
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    Tata Chemicals' current ratio decreased from 3.0 in 2018 to 2.37 in 2019, indicating the company had less cash on hand to pay current liabilities in 2019 compared to 2018. The current ratio measures a company's ability to pay short-term debts and obligations, with the standard ratio being 2:1. While Tata Chemicals' 2019 ratio remains above this standard, its lower ratio compared to the previous year suggests less financial flexibility. The document goes on to define the quick ratio but does not provide the specific quick ratio calculations or values for Tata Chemicals.

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    Tata Chemicals' current ratio decreased from 3.0 in 2018 to 2.37 in 2019, indicating the company had less cash on hand to pay current liabilities in 2019 compared to 2018. The current ratio measures a company's ability to pay short-term debts and obligations, with the standard ratio being 2:1. While Tata Chemicals' 2019 ratio remains above this standard, its lower ratio compared to the previous year suggests less financial flexibility. The document goes on to define the quick ratio but does not provide the specific quick ratio calculations or values for Tata Chemicals.

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    © All Rights Reserved
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    16 views1 page

    Ratio Analysis of Tata Chemicals: 1. CURRENT RATIO Current Asset/Current Liability

    Uploaded by

    Diksha Taneja
    Tata Chemicals' current ratio decreased from 3.0 in 2018 to 2.37 in 2019, indicating the company had less cash on hand to pay current liabilities in 2019 compared to 2018. The current ratio measures a company's ability to pay short-term debts and obligations, with the standard ratio being 2:1. While Tata Chemicals' 2019 ratio remains above this standard, its lower ratio compared to the previous year suggests less financial flexibility. The document goes on to define the quick ratio but does not provide the specific quick ratio calculations or values for Tata Chemicals.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    RATIO ANALYSIS

    OF TATA CHEMICALS

    1. CURRENT RATIO= Current Asset/Current Liability

    Current Asset 2019) =4469


    Current Liability (2019) =1884
    CR (2019) = 4469/1884
    =2.37
    Current asset (2018) = 5689
    Current Liability (2018) = 1868
    CR (2018) = 5689/1868
    =3.0
    The standard current ratio is 2:1. A lower CR means that the
    company has no money to pay and higher CR means that the
    company has enough cash. The CR of 2018 is more than that of
    2019.

    2. QUICK RATIO = Quick assets/ current Liabilities


    Quick assets= Current asset- prepaid expense- advance
    =

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