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 ...

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 ...

Ali Hussain has a background that consists of a career in finance with large financial institutions and in journalism covering business. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA ...

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 ...

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 ...

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 ...

“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...

In 2014, the Liquidity Coverage Ratio (LCR) was a much-needed response to the liquidity crises that exacerbated the global financial meltdown. The regulation requires banks to hold enough high-quality ...

Liquidity ratios are tools that show how well an organization can meet its short-term obligations, like rent, payroll, and immediate operating expenses. In the for-profit world, these ratios help ...

The ability of a company to convert short-term assets into cash is one of the primary concerns of financial managers because liquidity problems can have a big impact on operational efficiency and ...