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 ...

Liquidity ratios assess if a company can cover short-term debts with available assets. Key ratios include cash, quick, current, and operating cash flow ratios. A liquidity ratio over 1 suggests a ...

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 ...

Jim Mueller, CFA, began his career as a scientist. He has five years of experience as a senior analyst and another four years as a research analyst. Amy is an ACA and the CEO and founder of OnPoint ...

A quick ratio below industry standard means that your company has a relatively lower liquidity position than its competitors on one of the three common liquidity ratios used by companies. The quick ...

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 ...

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 ...

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 ...