Difference between revisions of "Real Ratio"
(Created page with "'''Content Coming Soon'''") |
m |
||
| Line 1: | Line 1: | ||
| − | '' | + | == 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. | ||
| + | |||
| + | |||
| + | |||
| + | |||
| + | ==See Also== | ||
| + | |||
| + | |||
| + | |||
| + | |||
| + | |||
| + | |||
| + | ==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.