How does QBCC Annual Reporting Work?
Your short-term liquidity, which refers to your capacity to fulfill immediate financial obligations, is assessed through the ratio of current assets to current liabilities.
To satisfy your current ratio requirements, your total current assets—such as cash, accounts receivable, inventory, and Work In Progress—must exceed your total current liabilities, which include outstanding bills, trade creditors, and tax obligations. Both current assets and liabilities represent amounts that are expected to be realized or settled within the next 12 months.