Financial ratio

07.07.2013 10:57

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Financial ratio

1) System used (mainly) in accounting and by bank managers to give a quick indication of the financial standing of a firm/ client (eg current ratio which indicates the relationship of a firm’s assets to its liabilities, or liquidity ratio – working capital to current liabilities – which indicates how quickly a firm could settle its debts).

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.93 (288 p.)


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