Скачать с ютуб Financial Ratios | Series 2 | Liquidity Ratios | Tamil | SJ Informative в хорошем качестве

Financial Ratios | Series 2 | Liquidity Ratios | Tamil | SJ Informative

INTRODUCTION ABOUT LIQUIDITY RATIOS Before we going into the topic of Liquidity ratios, we need to know about the term "Liquidity". Liquidity is the condition that, how it very fast to convert into money. If market is slightly volatile, we can consider the market is in liquidity condition, because we can sell or buy the stocks when market is in volatile condition slightly. Liquidity Ratios come to tell us what that, how the company or organisation convert into cash to handle current liabilities by using current assets. There are two important types of Liquidity ratios, which are Current Ratio Quick Ratio CURRENT RATIO Current ratio explain investors how the company or organisation manage the current liabilities by using current assets. It can be derived by the formula, Current Ratio = Current Assets \ Current Liabilities For examples, if current assets of the company is say Rs. 1,00,000 and the current liabilities is Rs. 60,000 from the details in balance sheet, as per the formula we can get the current by (1,00,000 \ 60,000) is 1.66. Current ratio should be more than 1 is fine, if less than 1, company's performance need to improve. QUICK RATIO Quick ratio explain investors how the company or organisation manage the current liabilities by using current assets without including inventories, receivables etc.,. It can be derived by the formula, Current Ratio = Current Assets - (Inventories & Receivables etc.,) \ Current Liabilities For examples, if current assets of the company is say Rs. 1,00,000, Inventories are Rs. 10,000, Receivables are Rs. 5,000 and the current liabilities is Rs. 60,000 from the details in balance sheet, as per the formula we can get the current by (1,00,000 - (10,000 + 5000) \ 60,000) is 1.416. CONCLUSION Investors and analyst must know the liquidity of the company for the better investment. Above mentioned ratios will help the investors to get the better stocks. Investors need to compare each and every ratio for at least 5 years for a single company and most importantly, companies in same industries should need to compare with one another. While comparing to Current ratio, Quick ratio is the better one to evaluate the stocks.