One of the key indicators investors use to assess a company's financial health is the liquidity ratio. This financial metric provides insight into a company’s ability to meet its short-term ...

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 ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Amy is an ACA and the CEO and founder ...

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 ...

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 ...

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 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 ...

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 ...