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Liquidity ratios

This section of the IB Business Management syllabus looks at liquidity ratios (AO2, AO4) and examines the possible strategies to improve these financial ratios (AO3).Liquidity ratios are financial ratios that examine an organization’s ability to pay its short-term liabilities and debts. Liquidity refers to the ease with which a business can convert its assets into cash without affecting its market value, i.e. it measures...

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