There are various types of liquidity ratios, including the current ratio and the quick ratio. Usually, a liquidity ratio greater than 1 is a positive sign. But a very high liquidity ratio isn't ...

Because the ratio came out above 1, it looks like Apple was in a healthy position to cover all of its upcoming liabilities as of late March 2021. The current and quick ratios are extremely similar.

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

The quick ratio evaluates a company's ability to pay its current obligations using liquid assets. The higher the quick ratio, the better a company's liquidity and financial health. A company with ...

An interested investor might also want to look at other key considerations like an organization's profit margins and quick ratio, for example. The current ratio, in particular, is one way to ...

How well can current assets cover current liabilities? Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Amy is an ACA and ...

The quick ratio differs slightly. Its calculation subtracts inventory from current assets before they're divided by current liabilities. This ratio can present better insight into the short-term ...

The quick ratio compares the value of a company's most liquid assets to the value of its current liabilities so investors can get a sense of how well it can cover its expenses in the short term.