Before you jump into any investment, it's important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn't ...

No matter how profitable a business, if it can't pay its bills as they come due, it's going to run into trouble. Therefore, the liquidity of a company -- how easily it can meet its upcoming ...

Profits may look good, but it's cash that pays the bills. As a small business owner, do you track the liquidity ratios of your business? You should be calculating these ratios on at least a weekly ...

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

Discover the potential drawbacks of high liquidity ratios, and learn how to determine a healthy liquidity range for your ...

The acid-test ratio is a financial metric that assesses a company’s ability to cover short-term liabilities with its most liquid assets. A higher acid-test ratio suggests a stronger liquidity position ...

Discover the key financial metrics investors use, like the quick ratio, ROA, and debt-to-capitalization, to evaluate the ...

The quick ratio, often referred to as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. It's calculated as (cash + ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...