An investor in Able Inc. would like to understand Able's funding requirements, also known as the availability of Able's resources to meet its short-term cash requirements. This type of analysis is known as a (n) (efficiency/liquidity) measure.

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Business

Kendall Cook

18 April, 06:19

An investor in Able Inc. would like to understand Able's funding requirements, also known as the availability of Able's resources to meet its short-term cash requirements. This type of analysis is known as a (n) (efficiency/liquidity) measure.

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Answers (1)

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Nathanial · Answer 1

liquidity measure

Explanation:

Liquidity measure -

It refers to the financial metrics, which is used to find out the potential of the debtor to return the current debt without any rise in the external capital, is referred to as liquidity measure.

The calculation of the metrics is donje, by using the operating cash flow ratio, quick ratio, current ratio.

Hence, from the given information of the question,

The correct answer is liquidity measure.