What is quick ratio?

What is meant by debt equity ratio?

Following is the balance sheet of Magesh Ltd. as on 31st March, 2019:

Particulars	Rs.
I EQUITY AND LIABILITIES
1. Shareholders’ funds
Equity share capital	2,00,000
2. Non-current liabilities
Long term borrowings	50,000
3. Current liabilities
(a) Short-term borrowings	17,000
(b) Trade payables	25,000
(c) Other current liabilities
Expenses payable	3,000
(d) Short-term provisions	5,000
Total	3,00,000
II ASSETS	Rs.
1. Non-current assets
Fixed assets
(a) Tangible assets	1,50,000
(b) Trade receivables	70,000
(c) Cash and cash equivalents	30,000
(d) Other current assets
Prepaid expenses	5,000
Total	3,00,000

Calculate:
(i) Current ratio
(ii) Quick ratio

From the following information calculate capital gearing ratio:

Balance Sheet (Extract) as on 31.03.2018

Particulars	Rs.
I EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital
Equity share capital	2,00,000
6% Preference share capital	1,00,000
(b) Reserves and surplus
General reserve	1,25,000
Surplus	75,000
2. Non-current liabilities
Long-term borrowings (8% Debentures)	2,00,000
3. Current liabilities
Trade payables	1,50,000
Provision for tax	50,000
Total	9,00,000

Definition of ratio analysis.

What is Liquidity ratios?

What is turnover ratios?

Quick ratio of a company is 1.5: 1.State giving reason, whether the ratio will improve, decline or not change on payment of divided by the company.

Why should the inventory turnover ratio be more important when analysing a grocery store than an insurance company?

The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. Comments.