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 how insurance companies manage current liquidity to cover liabilities with liquid assets. Learn the significance of liquidity ratios in assessing financial health.

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 ...

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 ...

P/CF multiples are calculated with a similar approach to what is used in the other price-based metrics. The P, or price, is simply the current share price of the firm. In order to avoid volatility in ...

Using liquidity ratios can help investors find struggling businesses that may be inefficiently managed and ultimately help increase stock returns. I always found it frustrating in school when finance ...

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 significant problem for new businesses is the management of cash flow. A business that is low on cash has trouble paying its suppliers and faces solvency problems, even if it has a long-term ...

Companies with outsized problems sometimes offer outsized dividends to keep shareholders happy while their share prices don’t. So the key question for any investor chasing a stand-out dividend should ...

Why should I care about my stock's Current Ratio or Inventory Turnover? What about its Cash Conversion Cycle or Cash Ratio? In the article below, I explain why using liquidity ratios can help find ...