Current ratio and International trade: Difference between pages

Revision as of 09:21, 10 February 2015

The exchange of goods, services or capital across international borders or territories.

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-Current assets &divide; Current liabilities.
+The exchange of goods, services or capital across international borders or territories.
-The current ratio gives a very rough indication of the liquidity (or solvency) of the reporting entity.
-If the current ratio were to fall below 1.0, this would indicate that the entity would not be able to meet its current liabilities out of its cash in hand and the proceeds of its other current assets.
-For example, if current assets are £5m and current liabilities are £4m, the Quick ratio = 5/4 = 1.25.
 == See also ==
-* [[Current assets]]
+* [[Trade]]
-* [[Current liabilities]]
+* [[Trade finance]]
-* [[Liquidity]]
-* [[Quick ratio]]
-[[Category:Liquidity_management]]