Certificate in Understanding Liquidity Ratios

Thursday, 12 February 2026 18:35:57

International applicants and their qualifications are accepted

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Overview

Overview

Understanding Liquidity Ratios


Liquidity ratios are essential tools for businesses and investors to assess a company's ability to pay its debts. This Certificate in Understanding Liquidity Ratios is designed for individuals who want to gain a deeper understanding of these ratios and their applications in finance.

Some key liquidity ratios include the Current Ratio, Quick Ratio, and Cash Ratio, which help evaluate a company's liquidity position and its ability to meet short-term obligations.


These ratios are crucial for making informed investment decisions, managing cash flow, and identifying potential risks. By completing this certificate program, learners will gain a solid understanding of liquidity ratios and how to apply them in real-world scenarios.

Whether you're a finance professional or an entrepreneur looking to improve your financial literacy, this certificate program is perfect for you. Upon completion, you'll be able to analyze a company's liquidity position and make data-driven decisions.


So, why wait? Enroll in the Certificate in Understanding Liquidity Ratios today and take the first step towards becoming a financial expert!

Liquidity Ratios are a crucial aspect of financial analysis, and our Certificate in Understanding Liquidity Ratios will equip you with the necessary skills to interpret and apply them effectively. By mastering this course, you'll gain a deeper understanding of Liquidity Ratios and their impact on business decisions. Key benefits include improved financial analysis, enhanced career prospects in finance and accounting, and the ability to make informed investment decisions. Unique features of the course include interactive case studies, real-world examples, and expert guidance from industry professionals. Upon completion, you'll be able to analyze and interpret Liquidity Ratios with confidence, opening doors to new career opportunities.

Entry requirements

The program operates on an open enrollment basis, and there are no specific entry requirements. Individuals with a genuine interest in the subject matter are welcome to participate.

International applicants and their qualifications are accepted.

Step into a transformative journey at LSIB, where you'll become part of a vibrant community of students from over 157 nationalities.

At LSIB, we are a global family. When you join us, your qualifications are recognized and accepted, making you a valued member of our diverse, internationally connected community.

Course Content

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• Current Ratio: Liquidity Ratio that compares current assets to current liabilities, indicating a company's ability to pay short-term debts. •
• Quick Ratio: Liquidity Ratio that compares (quick) current assets to current liabilities, excluding inventory, indicating a company's ability to pay short-term debts. •
• Cash Ratio: Liquidity Ratio that compares cash and cash equivalents to current liabilities, indicating a company's ability to pay short-term debts. •
• Debt-to-Equity Ratio: Ratio that compares total debt to shareholder equity, indicating a company's level of indebtedness. •
• Interest Coverage Ratio: Ratio that compares earnings before interest and taxes (EBIT) to interest expenses, indicating a company's ability to pay interest on its debt. •
• Return on Equity (ROE): Ratio that compares net income to shareholder equity, indicating a company's profitability and efficiency. •
• Return on Assets (ROA): Ratio that compares net income to total assets, indicating a company's profitability and efficiency. •
• Debt Service Coverage Ratio (DSCR): Ratio that compares cash flow to debt service, indicating a company's ability to pay its debts. •
• Times Interest Earned Ratio: Ratio that compares EBIT to interest expenses, indicating a company's ability to pay interest on its debt.

Assessment

The evaluation process is conducted through the submission of assignments, and there are no written examinations involved.

Fee and Payment Plans

30 to 40% Cheaper than most Universities and Colleges

Duration & course fee

The programme is available in two duration modes:
1 month (Fast-track mode): £140
2 months (Standard mode): £90

40% Cheaper

Our course fee is up to 40% cheaper than most universities and colleges.

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Awarding body

 The programme is awarded by London School of International Business. This program is not intended to replace or serve as an equivalent to obtaining a formal degree or diploma. It should be noted that this course is not accredited by a recognised awarding body or regulated by an authorised institution/ body.

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  • Start this course anytime from anywhere.
  • 1. Simply select a payment plan and pay the course fee using credit/ debit card.
  • 2. Course starts
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Got questions? Get in touch

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+44 75 2064 7455

admissions@lsib.co.uk

+44 (0) 20 3608 0144



Career path

Key facts about Certificate in Understanding Liquidity Ratios

The Certificate in Understanding Liquidity Ratios is a financial training program designed to equip individuals with the knowledge and skills necessary to analyze and interpret liquidity ratios, a crucial aspect of financial management.
This program is typically offered by institutions of higher learning, such as colleges and universities, and is usually completed in a few weeks or months, depending on the institution and the individual's prior experience.
Upon completion of the program, learners can expect to gain a solid understanding of liquidity ratios, including current ratio, quick ratio, and cash ratio, as well as how to apply these ratios to real-world business scenarios.
The learning outcomes of this program include the ability to analyze a company's liquidity position, identify potential liquidity risks, and develop strategies to mitigate these risks, all of which are essential skills for financial professionals, accountants, and business managers.
The industry relevance of this program is high, as liquidity ratios are widely used by investors, creditors, and other stakeholders to assess a company's ability to meet its short-term financial obligations.
In addition, the Certificate in Understanding Liquidity Ratios is relevant to various industries, including finance, banking, accounting, and business, making it a valuable addition to any professional's skillset.
Overall, the Certificate in Understanding Liquidity Ratios is a valuable investment for anyone looking to enhance their financial knowledge and skills, particularly in today's fast-paced and competitive business environment.

Why this course?

Certificate in Understanding Liquidity Ratios is a crucial tool for businesses in the UK, particularly in today's market where liquidity management is vital for survival. Liquidity ratios help companies assess their ability to pay short-term debts and meet financial obligations. In the UK, a company's liquidity is often measured by its current ratio, which is calculated by dividing current assets by current liabilities.
Liquidity Ratio UK Average
Current Ratio 1.5
Debt-to-Equity Ratio 0.8
Interest Coverage Ratio 3.2

Who should enrol in Certificate in Understanding Liquidity Ratios?

Ideal Audience for Certificate in Understanding Liquidity Ratios This course is designed for finance professionals, accountants, and business owners in the UK who want to improve their understanding of liquidity ratios and make informed decisions about their company's financial health.
Key Characteristics: - Financial managers and analysts
Industry Experience: - Those with 2+ years of experience in finance, accounting, or a related field
Knowledge Gaps: - Understanding of liquidity ratios and their application in financial analysis
Career Goals: - To enhance career prospects in finance, accounting, or business management
UK-Specific Statistics: - According to a recent survey, 75% of UK businesses struggle with liquidity management, highlighting the need for professionals to understand liquidity ratios.