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Liquidity is companies’ ability to pay short term obligations and debts

Liquidity is companies’ ability to pay short term obligations and debts m3kqn
Liquidity is companies’ ability to pay short term obligations and debts also, to quickly dispose of assets in order to generate the cash. The calculated current ratio determines the increase from 1. 37 in 2020 to 1. 60 in 2021. This increase shows that the company is in a good state to pay off its short-term obligations. The current ratio has increased to 1. 60, which is not ideal because the current ratio should be between 2: 1 but careful industrial analysis has revealed that most companies in the same sector fall below the ideal ratio, even though the indicator of the increase is showing growth. Bunzl PLC's current ratio for 2020 is 1. 42, indicating that the firm is performing well in comparison to PZC. Investors use the Quick ratio to determine whether a company can meet its current liabilities by turning short-term assets into cash without selling inventories. PZ Cussons' Quick ratio has been enhanced in 2021 to 1. 12 from 0. 82 in the previous year, indicating that the firm has adequate liquid assets to meet its present needs. Bunzl has a fast ratio of 0. 88 for the 2020. A good quick ratio is any value which is above 1. 0 a number below this value indicates that the company could be high debts or low on sales. But BZ has increased the revenue and its debts also have been decreased.
Liquidity is
companies’
ability to pay short term obligations and debts
also
, to
quickly
dispose of assets in order to generate the cash. The calculated
current
ratio
determines the increase from 1. 37 in 2020 to 1. 60 in 2021. This increase
shows
that the
company
is in a
good
state to pay off its short-term obligations. The
current
ratio
has increased to 1. 60, which is not ideal
because
the
current
ratio
should be between 2: 1
but
careful industrial analysis has revealed that most
companies
in the same sector fall below the ideal
ratio
,
even though
the indicator of the increase is showing growth.
Bunzl
PLC's
current
ratio
for 2020 is 1. 42, indicating that the firm is performing well
in comparison
to
PZC
. Investors
use
the Quick
ratio
to determine whether a
company
can
meet
its
current
liabilities by turning short-term assets into cash without selling inventories.
PZ
Cussons
' Quick
ratio
has
been enhanced
in 2021 to 1. 12 from 0. 82 in the previous year, indicating that the firm has adequate liquid assets to
meet
its present needs.
Bunzl
has a
fast
ratio
of 0. 88 for the 2020. A
good
quick
ratio
is any value which is above 1. 0 a number below this value indicates that the
company
could be high debts or low on sales.
But
BZ
has increased the revenue and its debts
also
have
been decreased
.
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IELTS essay Liquidity is companies’ ability to pay short term obligations and debts

Essay
  American English
1 paragraphs
235 words
This writing has been penalized,
text can't be
less than 250 words in Task 2
and less than 150 words in Task 1
5.0
Overall Band Score
Coherence and Cohesion: 5.5
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Lexical Resource: 5.0
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Grammatical Range: 6.5
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Task Achievement: 5.0
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    Present relevant ideas
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