SHORT-TERM SOLVENCY RATIOS

To study the short term solvency or liquidity of the firm, the following are various ratios
Current Assets Ratio
Acid Test Ratio or Quick Assets Ratio
Super Quick Assets Ratio
Defensive Interval Ratio
Current Assets Ratio
It is one of the important accounting ratios to find out the ability of the business fleeces
to meet out the short financial commitment This is the ratio establishes the relationship
in between the current assets and current liabilities. Ratio Analysis
What is meant by current assets /Current assets are nothing but available in the form of
cash, equivalent to cash or easily convertible in to cash.
What is meant by the current liabilities?
Current liabilities are nothing but short term financial resources or payable in short span
of time within a year.

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