Liquidity analysis ratios are ratios of assets versus liabilities. These ratios indicate a company's ability to cover short-term obligations.
Liquidity analysis ratios include the following:
CurrentRatio
Calculates the current ratio, which is a general indicator of the business's ability to meet its short-term financial commitments. This ratio assumes that all current assets, if required, can be converted to cash to meet all current liabilities immediately.
*function CurrentRatio(%CURRENTASSET%,%CURRENTLIAB%)
iif(%CURRENTLIAB%=0,Null,%CURRENTASSET%/%CURRENTLIAB%)
*endfunction
QuickRatio
Calculates a quick ratio, also called the acid test ratio. A quick ratio is a current ratio modified to provide a more prudent measure of short-term liquidity.
*function QuickRatio(%CASH%,%ACCREC%,%CURRENTLIAB%)
iif(%CURRENTLIAB%=0,Null,(%CASH%+%ACCREC%)/%CURRENTLIAB%)
*endfunction
NetworkCapRatio
Calculates the net working capital ratio, which is another indicator of a company's ability to satisfy short-term debt.
*function NetWorkCapRatio(%CURRENTASSET%,%CURRENTLIAB%,%TOTALASSET%)
iif(%TOTALASSET%=0,Null,(%CURRENTASSET%-%CURRENTLIAB%)/%TOTALASSET%)
*endfunction
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