Lecture-43- Liquidity Ratios- Grasim Industries (Part-2)

[@mohammadkamran9727]

Dear Sir, Very well explained, Thank you very much

[@nikhiltaneja9120]

Sir why are we not taking the avg debtors and avg creditors? Why are we taking only closing amount for these when the formula is Total sales or Purchases/ Avg debt or avg creditor. Please reply.

[@mohammadkamran9727]

I think Sir has explained in previous video that, in most of case the Average Debtors or Average Creditor are not available, So we will take closing amount for these. This is what the realty in practical case.