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Ratio analysis

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(Querist)
26 May 2015 Hi sir current ratio minus liquid ratio=what?
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CA. Sunil Gokhale

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CA. Sunil Gokhale (Expert)
27 May 2015 Current ratio - liquid ratio = stock.

Denominator for both ratios is generally taken as current liabilities (assuming no bank o/d). Hence, difference in numerator amounts to stock.

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