The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

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 ...

It's time to dispense with the fiction that there is no cost to treating underwater "held-to-maturity" securities as ...

The Aged Care Quality and Safety Commission has announced a 2 per cent liquidity standard for retirement village deposits and ...

The Effects of Liquidity Ratios. The ability of a company to convert short-term assets into cash is one of the primary concerns of financial managers because liquidity problems can have a big ...

While liquidity ratios are standard tools in for-profit companies, they offer unique insights for non-profits, helping assess stability, resource allocation, and future planning.

Solvency risk can be assessed by analysing the company’s solvency ratio. Conclusion Liquidity ratio allows an investor to understand how liquid a company is for converting short-term assets into ...

Sophisticated banking has funding sources other than deposits. This diminishes the latter’s relative importance and thus also how useful a bank or banking sector’s credit-deposit ratio is. It ...

Regulators must review the liquidity coverage ratio Recent events call into question most of the core assumptions behind the rules designed to keep banks safe through a liquidity squeeze.

Unlike other liquidity ratios, such as the current ratio or quick ratio, DIR specifically measures a company's ability to sustain itself without needing additional funds.