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Working capital ratios - Coggle Diagram
Working capital ratios
Liquidity ratios
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Current ratio
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There is a general target of 2:1, the acceptability of the ratio will depend on the nature of the business and how it compares with those of a similar type
Quick ratio / acid test
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The general target is 1:1, an ideal ratio depends on industry practice
Efficiency ratios
Efficiency ratios measure how efficiently a company uses its assets to generate revenue and manage its liabilities
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