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 ...

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 ...

The Acid Test ratio is a key balance sheet liquidity ratio that helps you estimate how well a company can handle a credit crunch. The acid test ratio is a balance sheet-based financial measure ...

Liquidity is the ability of a business to meet its short-term financial obligations. Several common liquidity ratios are used to measure a business's overall financial picture. By measuring liquidity, ...

The worst news investors can get is that a company whose stock they own has gone bankrupt. As cataclysmic as bankruptcy can be, there are usually warning signs that astute investors can look for ...

Banks and investors will typically use financial ratios to measure the performance of your business. They may also be used to gain insight on a company’s financial statements. Regardless if you’re a ...