Difference between revisions of "Real Ratio"
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+ | The Real Ratio is a financial ration that measures a company's ability to pay off its current liabilities with its most liquid real assets (such as inventory and accounts receivable). It is calculated by dividing a company's real assets by its current liabilities. The higher the real ratio, the more liquid a company is and the better able it is to pay off its short-term liabilities. | ||
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+ | ==See Also== | ||
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+ | ==References== | ||
+ | <references /> |
Revision as of 17:43, 2 January 2023
What is
The Real Ratio is a financial ration that measures a company's ability to pay off its current liabilities with its most liquid real assets (such as inventory and accounts receivable). It is calculated by dividing a company's real assets by its current liabilities. The higher the real ratio, the more liquid a company is and the better able it is to pay off its short-term liabilities.