RATIOS

Q: What is current ratio.
A: Current assets/current liabilities.

Q: What is its Benchmark.
A: Min 1.33:1

Q: What is Debt Equity ratio.
A: long term debt/equity.

Q: What is its Benchmark.
A: Max 2:1

Q: What is DSCR.
A: ( PAT+DEP+INTEREST ON TERM LOAN) /( INSTALLMENT OF TERM LOAN +INTEREST ON TERM LOAN.)

Q: What is its Benchmark.
A: Min 1.5

Q: What is liquidity ratio.
A: current ratio and acid test ratio are called liquidity ratio.