What's it: The liquidity ratio is a financial ratio to measure a company's ability to meet its short-term obligations. Commonly used ratios are
Liquidity Ratio
Current Ratio: How to Calculate and Interpret
What's it: The current ratio is a financial ratio to measure liquidity by considering all short-term assets and liabilities. It is the
Quick Ratio: Formula, Calculation, Interpretation
What's it: The quick ratio is a financial ratio to measure liquidity by excluding some less liquid accounts such as inventory. It tells
Acid Test Ratio: Meaning, Formula, Calculation
What's it: The acid test ratio is a liquidity ratio to measure whether a company has sufficient cash to cover current liabilities using its
Defensive Interval Ratio: Importance, Calculation, and Interpretation
What's it: The defensive interval ratio is a financial ratio to measure how long a company can continue to meet daily expenses using
Advertisement
Cash Ratio: Formula, Calculation, and Interpretation
What's it: The cash ratio is a financial ratio to measure a company's ability to meet its short-term liabilities. It is the most
Cash Conversion Cycle: How it Works, Calculation and Interpretation
What's it: The cash conversion cycle measures how long, in days, it took a company to collect cash since the money was spent on buying raw