Advertisements
Advertisements
प्रश्न
Assume you are a loan officer of a bank, and two companies require a loan of equal amount to be repaid over the next five years based on the following information:
| Birla Cement | Ambuja Cement | |
| Current Ratio | 2:1 | 3.5:l |
| Debt-Equity Ratio | 35% | 45% |
If you could grant a loan to only one company, which company will it be and why?
लघु उत्तर
Advertisements
उत्तर
A loan will be granted to Birla Cement. Its current ratio is 2:1, which is considered ideal and shows sufficient liquidity to meet short-term obligations. Its debt-equity ratio is 35%, lower than Ambuja Cement’s 45%, meaning Birla depends less on borrowed funds and carries lower financial risk.
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
