In April 2018, the Financial Manager of Dr. Reddy`s Laboratories (DRL), , wanted to understand the liquidity position of the company for the financial year 2017-18 before the operations for the financial year 2018-19 commenced.

He held discussions with the management accountant of the company to find out about the composition of various current assets and current liabilities, so as to come to a conclusion about the decisions to be taken with respect to the company’s operations for the financial year 2018-19.

The present case study provides information for analyzing and interpreting the key liquidity ratios; current ratio, quick ratio, and cash ratio, which will be helpful in understanding the liquidity position of the company.

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Issues

The case is structured to achieve the following teaching objectives:

	The process of analyzing and interpreting the liquidity position of a company.
	The difference between various liquidity ratios.
	The liquidity position of Dr. Reddy`s Laboratories.

Contents

INTRODUCTION

EXHIBITS

Keywords

Dr.Reddy`s Laboratories,Current Ratio,Quick Ratio,Cash Ratio,Overall Liquidity,Current Assets,Current Liabilities,Quick Assets

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