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 ...

Both the current ratio and quick ratio provide straight forward measures of liquidity, which reflects a company's ability to use current assets such as cash, inventory and receivables to meet ...

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 ...

When you’re evaluating a potential investment, you likely look at profitability and growth, but there is one fundamental concept you must master first: liquidity. Just as a household needs enough cash ...

Financial ratios provide business owners with a quantitative analysis of their company's financial information. Business owners can also use financial ratios to create benchmarks for comparative ...

Balance sheets illustrate a company's financial stability via assets and liabilities. The acid-test ratio measures liquidity, with values over 1 indicating strong liquidity. High acid-test ratios ...