Answer :
Answer:
The current answer is Liquidity Ratio
Explanation:
Other examples of Liquidity ratios are cash ratio and working capital ratio.
Current Ratio = Current Assets/Current Liabilities
Cash Ratio = Cash + Cash equivalens/Current Liabilities
Working Capital Ratio = Sales (or Revenue)/ Working Capital
All the above ratios help the financial analyst or the entrepreneur gauge the financial health of a business concerning its ability to pay up short-term debts obligations.
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Short-term debts or current liabilities are the liabilities that are termed as the firm's obligations that are to be paid off within the financial year in order to avoid the debt burden on the legal entity as well as the owner of the company.
The correct answer is Liquidity Ratio
Other examples of Liquidity ratios are the cash ratio and working capital ratio.
Current Ratio = [tex]\begin{aligned}\frac{\text{Current Assets}}{\text{Current Liabilities}}\end{aligned}[/tex]
Cash Ratio = Cash + [tex]\begin{aligned}\frac{\text{Cash Equivalent}}{\text{Current Liabilities}}\end{aligned}[/tex]
Working Capital Ratio = [tex]\begin{aligned}\frac{\text{Sales (revenue)}}{\text{Working Capital}}\end{aligned}[/tex]
The above ratios help the financial analyst or the entrepreneur gauge the financial health of a business concerning its ability to pay up short-term debts obligations.
To know more about the current ratio or the quick ratio, refer to the link below:
https://brainly.com/question/14787439