Liquidity ratios are financial analysis tools commonly used to gauge a company's ability to repay short-term creditors out of its cash fund.

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 ...

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 ...

Liquidity ratio allows an investor to understand how liquid a company is for converting short-term assets into cash. On the other hand, ...

Liquidity ratios are tools that show how well an organization can meet its short-term obligations, like rent, payroll, and immediate operating expenses. In the for-profit world, ...

For instance, a liquidity ratio, also known as current ratio, of exactly 1 means a firm's assets are equal to its outstanding obligations, ...

In 2014, the Liquidity Coverage Ratio (LCR) was a much-needed response to the liquidity crises that exacerbated the global financial meltdown. The regulation requires banks to hold enough high ...

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 ...