Introduction to Business

Liquidity Analysis of Potz and Pans

Introduction

Ratios analysis is an importance part of finance since it shows company's trend with respect of liquidity, profitability, asset management, Debt management and market value of the company. When different companies apply for loan, Banks usually analyze company on the basis of these ratios. In this essay, the focus would b on calculating and analyzing the current and quick (acid-test) ratios of different businesses and on the basis of this, the decision will be made.

Discussion

Liquidity ratio

Liquidity ratios are those ratios which indicate company's ability to meet their short term debt obligation. In order ...