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Sticky Note
The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources?
وہ تناسب جو فرم کی اپنے قلیل مدتی وسائل میں سے قلیل مدتی ذمہ داریوں کو پورا کرنے کی صلاحیت کا حوالہ دیتے ہیں؟
  1. Activity ratios
  2. Profitability ratios
  3. Liquidity ratio
  4. Leverage ratios
Explanation

Liquidity ratios determine a company's ability to cover short-term obligations and cash flows.

Solvency ratios are concerned with a longer-term ability to pay ongoing debts.

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