Learning outcomes
Introduction to liquidity and efficiency ratios
Liquidity and efficiency ratios activity
Interpretation of accounts liquidity and efficiency
Glossary

Interpretation of accounts 2

Introduction to liquidity and efficiency ratios

There are three ratios which are used to measure the liquidity and efficiency of a business they are:

  • Current working capital ratio
  • Acid test ratio
  • Stock turnover rate

Drag the items from the boxes below into the empty space provided, to make up the formulae for the different liquidity and efficiency calculations.





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