What is current ratio and suitable current ratio What is DSCR.(Debt Service Coverage Ratio) How you analysis profit and loss and balance sheet

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Accepted Answer

Current ratio and DSCR are financial ratios used to analyze a company's financial health.

Current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A suitable current ratio varies by industry, but generally a ratio of 2:1 is considered good.
DSCR measures a company's ability to pay its debt obligations. A ratio of 1.25:1 or higher is considered good.
To analyze a profit and loss statement, look at revenue, expenses, and net income. To analyze a balance sheet, look at assets, liabilities, and equity.
Financial ratios should be used in conjunction with other financial analysis tools to get a complete picture of a company's financial health.

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