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INTERPRATIVE ANALYSIS - I N T E RPRAT I VE A NALYS IS L IQ...

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INTERPRATIVE ANALYSIS LIQUIDITY - It can be regarded as the ability of the firm to pay its liabilties whether long-term or short term with the t available current assets and long non-current assets. Its of two type :- 1. SHORT-TERM liquidity- capability of a firm to pay Current Liabilties through Current Assets. For ex – Current ratio. 2. LONG-TERM liquidity- to be able to pay long term liabities through non-current assets. For ex – Debt-Equity ratio. From the past few years there has minor changes in the liuiduty of the firm,the figures are very much close to each other. There is only a slight change. The current ratios of booth years are really close to the idol ratio i.e. 2:1. That means the firm is able to pay its current liabilities with available current assets. The lendors or creditors can feel secured that their amount will be paid back in full and on time.
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