Discover how the quick liquidity ratio evaluates a firm's ability to meet short-term debts with its liquid assets, including examples and comparisons with the current ratio.

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 + ...

Sound financial management is necessary in a small business -- to make the most of your assets, you need to properly account for them. The quick ratio is a simple financial ratio that can help you to ...

Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

For investors and business management alike, a few critical financial ratios help assess a company's financial health. One of the common ways of using these ratios is to compare them, ratio by ratio, ...

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 ...

The current ratio is a widely understood financial metric, familiar even to those with a basic knowledge of banking and finance. It is routinely used by bankers during the credit appraisal process for ...

A quick glance at Wal-Mart's balance sheet reveals that the company cannot meet all of its bills falling due within 12 months, but should you be worried? Why is this important? Well, if a company's ...

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 ...