Liquidity Ratios (Current, Quick, Cash)
Liquidity Ratios for CA Inter FM: master Current Ratio, Quick Ratio & Cash Ratio with formulas, solved examples & exam tips for May 2026.
Paper 6 — Financial Management & Strategic Management · Chapter
Ratio & Financial Statement Analysis
Computation and interpretation of liquidity, solvency, activity and profitability ratios. Expect 6–8 marks per attempt.
25 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
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2
Solvency Ratios (Debt-Equity, Interest Coverage)
Master CA Inter solvency ratios — Debt-Equity, ICR, Proprietary Ratio — with plain-English explanations, worked examples in ₹, and exam pitf
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3
Activity / Turnover Ratios
Master Activity & Turnover Ratios for CA Inter May 2026 — formulas, worked examples, and exam tips for inventory, debtors, creditors, and as
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4
Profitability Ratios (GP, NP, ROCE, ROE)
Profitability ratios explained for CA Inter May 2026: GP ratio, NP ratio, ROCE, ROE with worked examples, formulas, and exam pitfalls.
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5
Capital Structure Ratios
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6
Coverage Ratios
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7
DuPont Model for Return on Equity
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8
Introduction & Key Terms (Trading A/c, P&L A/c, Balance Sheet)
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9
Limitations of Financial Ratios
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10
Liquidity Ratios (Current, Quick, Cash, Basic Defense Interval, Net Working Capital)
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11
Market / Valuation Ratios: P/E, Dividend & Earnings Yield, MV/BV, Q Ratio
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12
Operating Efficiency & Liquidity Position Ratios
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13
Operating Efficiency and Liquidity Ratios
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14
Overall Return Ratios and Market / Investor Ratios
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15
Owner's Point of View Ratios: EPS, DPS, Dividend Payout
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16
Profitability Ratios Based on Sales
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17
Profitability Ratios related to Sales (Operating Profit & Expenses Ratios)
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18
Ratios for Different Stakeholders
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19
Ratios for Investment Analysis
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20
Return on Equity using the Du Pont Model
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21
Return on Investment (ROI): ROA, ROCE, ROE
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22
Stock Turnover, Gearing & Debt Service Coverage Ratios
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23
Stock Turnover, Gearing and DSCR
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24
Turnover / Activity / Performance Ratios
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25
Users & Objectives of Financial Analysis and Applications of Ratio Analysis
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