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.

CURRENT RATIO:

The current ratio assesses a company's capacity to meet short-term obligations that mature within
a year. The weight of total current assets vs total current liabilities is also taken into account.
Anlima Yarn Dyeing Limited ' current ratio is 0.807 times in 2020 and 0.866 times in 2021, as
shown in the table. Their present ratio is too low in both years because the standard Current
Ratios value is 2:1. The low current ratio of this corporation implies that it is not appropriately
managing its liabilities. Because it had fewer assets on hand, the corporation was unable to
reduce its liabilities.