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INTERPRETATION
Liquidity and Coverage Ratio:
On a span of five years, the current ratio for Asian
paints has been growing under a healthy and a steady
rate, with 1.464 in 2011 to 1.51 in 2015 thus showing a
good comfort rate in the liquidity of the assets, since they
are under an industry in which inventory count shall exist
the main task is to smartly maintain and monitor the
inventory expenditure which is reflected in the quick
ratio or the acid test ratio as in Asian paints it has
been under a steady count from an value of 0.82 to 0.85
in 2011 to 2015 respectively, thus displaying not any
drastic variation of the impact of inventory or potential
asset conversion upon the comfort of liquidity of the
assets. But if seen the current and the quick ratio gap
displays that the check upon this aspect is required by
Asian paints. At a same platform when Kansai Nerolac is
checked for its current ratio it goes at PAR against Asian
Paints with a current ratio of 2.22 to 2.14 in 2011 to 2015
respectively, which is equally supported by a higher
Quick ratio or the acid test ratio at 1.42 to 1.24 in