A STUDY ON ANALYSING THE LIQUIDITY OF SONY TEXSPARES INDUSTRIES COIMBATORE

Abstract

Liquidity ratio analysis is used to determine the ability of an organization to pay its bills in a timely manner. Liquidity ratio analysis is especially important for lenders and creditors. This ratio provides information on a company's ability to meet its short term, immediate obligations. The present study aims at finding out the liquidity position of the company using liquidity ratios. The ratios which are used in this study are ; Current ratio is relationship between all current assets ¤t liabilities. Quick or liquid ratio is relationship between liquid asset ¤t liabilities. Absolute liquid ratio is relationship between bank, cash & marketable securities and current liabilities