The following information is given with respect to the ratio's of two companies
                                        Aman Ltd      Roger Ltd
Current ratio                 2:01                1.60:1
Quick Ratio                    1.35:1             1:01
Return on investment  15%                13%
Debt Equity Ratio          2.5:1               1:01

a. Define the concepts of Current and Quick ratio’s and also, reflect on your understanding towards the financial performance of the companies by looking to the above information

b. Define the terms- Return on Investment and Debt equity ratio and also, reflect on your understanding towards the financial performance of the companies

Answer rating: 100% (QA)

a Both the current ratio and quick ratio measure a companys shortterm liquidity or its ability to generate enough cash to pay off all debts should they become due at once Although theyre both measures ... View the full answer