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how to find a company liquidity and profitability from annual report

Sagot :

Answer:

A company liquidity and profitability from annual report is calculated and discussed below in details.

Explanation:

The current ratio (also identified as the working capital ratio) estimates the liquidity of a corporation and is computed by dividing its prevailing assets by its prevailing liabilities. The title current applies to short-term assets or contracts that are used (assets) and cleared off (liabilities) is shorter than one year.

An Income Report is traditionally applied to estimate the profitability of the company for the prior accounting period.