What Should be an ideal ratio of assets : liabilities in case of a self employed professional mgmt consultant?
You are mentioning about Current Ratio and you get it by deviding the Current Assets by Current Liabilities and it is well accepted that the ideal ratio is 2:1. You can get the Current Assets by adding up the items like Cash and Bank Balance, Debtors, Bills Receivable, Closing Stock and such assets of current nature. The Current Liability you get by adding Creditors, Bills Payable, Bank OD and such liabilities of current nature. Current means which relate to the current year.
