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Financial Statement Ratios
Financial Statement Ratios
1. Current Ratio
It measures the ability of the business to pay its
short-term obligations as they fall due.
Current Liabilities
II. EFFICIENCY RATIO OR TURNOVER
RATIOS
1. Receivable Turnover
Measures the efficiency to collect the
amount due from credit customers.
1. Debt Ratio
Otherwise known as the debt to assets ratio, measures
business liabilities as a percentage of total assets.