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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › ideal ratios for gearing current and quick ratios
Can i pls have the ideal ratio answers for gearing current and quick ratios pls
There aren’t idea ratios. All of ratio analysis depends on comparison, usually with the previous year.
However, a quick ratio much less than one could be a cause for concern. S for gearing, I think that interest cover (profit before interest/interest) would be more useful.
