liquidity ratio

The Cash Flow Forecast is an essential tool for anticipating the surplus or future cash needs of a business. It’s a key aspect of financial management to avoid a lack of liquidities or, conversely, to avoid having huge amounts of idle cash.

The solvency ratio gives an insight into the ability of an organization to meet its financial obligations and how much it depends on its creditors.

This article explains the Cash Ratio in a practical way. After reading you will understand the basics of this powerful financial management tool. What is Cash Ratio? The Cash Ratio…