Aqid ERPMeaning
Liquidity ratios (نسب السيولة) compare what a business can turn into cash soon with what it must pay soon. The current ratio divides current assets (cash, receivables, stock) by current liabilities (suppliers, short-term loans, VAT and salaries payable). The quick ratio, or acid test, leaves stock out, because stock has to be sold before it pays anyone. The cash ratio keeps only cash and near-cash.
There is no single right number: a current ratio around 1.5 to 2 is often read as comfortable, but a supermarket that sells for cash can run safely below 1, while a contractor waiting months for payment needs more. Read the trend and the mix: a rising current ratio built on slow-moving stock or old receivables is weaker than it looks. Banks check these ratios before lending.
Also called: current ratio · quick ratio · acid-test ratio · cash ratio · نسب السيولة
Example
Al Noor's balance sheet shows cash of 150,000.00, receivables of 350,000.00 and stock of 500,000.00, against current liabilities of 600,000.00. Its current ratio is 1,000,000 ÷ 600,000 = 1.67, but its quick ratio is 500,000 ÷ 600,000 = 0.83: without selling stock it cannot meet every short-term bill.