Liquidity Analysis of Select Firms Listed in Muscat Securities Market – Sultanate of Oman
Liquidity Analysis of Select Firms Listed in Muscat Securities Market – Sultanate of Oman

Summary/Abstract: The study is to examine the liquidity of select manufacturing and service companies listed in Muscat Securities Market. The study examines the value of liquidity analysis using the traditional ratios compared to cash flow ratios. The traditional ratios used are Current Ratio, Quick Ratio, Total Assets to Total Liabilities and Interest Coverage Ratio. The Cash Flow Ratios used are Operating Cash Flow Ratio; Critical needs Cash Coverage, Cash Flow to Total Debt Ratio and Cash Interest Coverage Ratio. Correlation and Paired T Test are used to check the statistical significance. The study concludes that exists between Traditional Ratios and Cash Flow Ratios. Cash Flow Ratios can lead to better decision regarding the liquidity of a firm.

• Details
• Contents