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  • Quick Ratio

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    MahirAhmed
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    The quick ratio assesses a company's ability to meet short-term obligations by identifying assets that can be quickly converted to cash. Anlima Yarn Dyeing Limited's quick ratio was poor in both 2020 and 2021, at 0.447 and 0.478 times respectively, indicating the company lacked sufficient current assets to cover its current liabilities and may have difficulties meeting short-term financial obligations.

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    The quick ratio assesses a company's ability to meet short-term obligations by identifying assets that can be quickly converted to cash. Anlima Yarn Dyeing Limited's quick ratio was poor in both 2020 and 2021, at 0.447 and 0.478 times respectively, indicating the company lacked sufficient current assets to cover its current liabilities and may have difficulties meeting short-term financial obligations.

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    16 views1 page

    Quick Ratio

    Uploaded by

    MahirAhmed
    The quick ratio assesses a company's ability to meet short-term obligations by identifying assets that can be quickly converted to cash. Anlima Yarn Dyeing Limited's quick ratio was poor in both 2020 and 2021, at 0.447 and 0.478 times respectively, indicating the company lacked sufficient current assets to cover its current liabilities and may have difficulties meeting short-term financial obligations.

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    © All Rights Reserved
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    QUICK RATIO:

    The quick ratio, also known as the Acid-test or Liquidity ratio, assesses a company's capacity to
    meet short-term obligations by identifying assets that may be converted into cash quickly.
    Anlima Yarn Dyeing Limited ‘s quick ratio is poor in both years, as shown in the table. Their
    quick ratio is 0.447 times in 2020. This indicates that the corporation is less liquid and unable to
    satisfy its financial obligations. Because they have less than $1 in current assets for every dollar
    in current obligations. We can observe that their quick ratio in 2021, is 0.478 times. In both the
    years, the company does not have enough capacity to meets its short-term obligations.

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