The quick ratio, often referred to as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. It's calculated as (cash + ...

Liquidity ratios are a class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital.

Discover what quick assets are, their role in business finance, and why they're essential for a company's liquidity. Learn ...

Sound financial management is necessary in a small business -- to make the most of your assets, you need to properly account for them. The quick ratio is a simple financial ratio that can help you to ...

Also known as liquidity ratios, liquid ratios measure how well a firm can use its short-term assets to meet its short-term debt obligations. Business managers can use several different liquidity ...

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 ...

A quick glance at Wal-Mart's balance sheet reveals that the company cannot meet all of its bills falling due within 12 months, but should you be worried? Why is this important? Well, if a company's ...