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Glossary: Profitability and liquidity ratio analysis

IB Business ManagementUnit 3.5 Profitability and liquidity ratio analysiswww.thinkib.net/businessmanagementAcid test ratioAlso known as the quick ratio, this is a short-term liquidity ratio used to measure an organization’s ability to pay its short-term debts (within the next 12 months of the balance sheet date), without the need to sell any stock (inventories).Current ratioA short-term liquidity ratio used to calculate...

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