# Financial Strength Ratios

<table><thead><tr><th width="129">Code</th><th>Data field</th><th>Calculation</th><th>Meaning and Applications</th></tr></thead><tbody><tr><td><strong>F5.16</strong></td><td><strong>Cash ratio</strong></td><td><p>According to VAS, the quick ratio is equal to “Cash and cash equivalents” divided by short-term liabilities.</p><p> </p><p>Or: F5.16 = F2.2/F2.54</p></td><td>Cash ratio shows the ability of the company to pay immediately</td></tr><tr><td><strong>F5.17</strong></td><td><strong>Quick ratio</strong></td><td><p>According to VAS, quick ratio is the value of cash and cash equivalents plus investments that can be sold quickly in meeting short-term liabilities.</p><p> </p><p>Or: F5.17 = (F2.2 + F2.6)/F2.54</p></td><td><p>According to VAS, quick ratio is the value of cash and cash equivalents plus investments that can be sold quickly in meeting short-term liabilities.</p><p> </p><p>Or: F5.17 = (F2.2 + F2.6)/F2.54 Quick ratio = (Cash and cash equivalents + short-term financial investments)/short-term liabilities.</p><p> </p><p>Quick ratio measures the ability of a company to quickly liquidate assets to meet short-term liabilities. This index is very important for banks with short-term loans. The quick ratio is more conservative than the current ratio because it only includes assets that are considered "quick" to sell.</p></td></tr><tr><td><strong>F5.18</strong></td><td><strong>Current ratio</strong></td><td><p>According to VAS, the current ratio is equal to the total value of current assets divided by total short-term liabilities.</p><p> </p><p>Or: F5.18 = F2.1/F2.54</p></td><td>The current ratio measures a company's ability to pay its short-term liabilities. Depending on different sectors, however, this ratio is about 1-2 times, showing good liquidity of the business.</td></tr><tr><td><strong>F5.19</strong></td><td><strong>Long-term debt/equity</strong></td><td><p>F2.69/F2.74</p><p> </p><p>This index is calculated based on quarterly and year-end data</p></td><td></td></tr><tr><td><strong>F5.20</strong></td><td><strong>Long-term debt/asset</strong></td><td><p>F2.69/F2.52</p><p> </p><p>This index is calculated based on quarterly and year-end data</p></td><td></td></tr><tr><td><strong>F5.21</strong></td><td><strong>Debt/Equity</strong></td><td>Long-term loan + short-term loan divided by equity=(F2.55 + F2.69)/F2.74</td><td></td></tr><tr><td><strong>F5.22</strong></td><td><strong>Debt/Assets</strong></td><td><p>Long-term loans + short-term loans divided by total assets</p><p> </p><p>=(F2.55 + F2.69)/F2.52</p></td><td></td></tr><tr><td><strong>F5.23</strong></td><td><strong>Short-term liabilities/Equity</strong></td><td>= F2.54/F2.74</td><td></td></tr><tr><td><strong>F5.24</strong></td><td><strong>Short-term liabilities/Assets</strong></td><td>= F2.54/F2.52</td><td></td></tr><tr><td><strong>F5.25</strong></td><td><strong>Total liabilities/Equity</strong></td><td>= F2.53/F2.74</td><td></td></tr><tr><td><strong>F5.26</strong></td><td><strong>Total liabilities/Assets</strong></td><td>= F2.53/F2.52</td><td></td></tr></tbody></table>