Size up potential investments with profitability ratios, liquidity ratios, solvency ratios, and valuation ratios. Use them in combination for a comprehensive view.

When it comes to understanding the health of a business, liquidity ratios are like a quick check-up at the doctor’s office.

When investors evaluate a company, liquidity ratios often become a focal point. These ratios help investors gauge how well a company can handle its ...

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 ...

While the current ratio offers investors a convenient way to compare the short-term liquidity of various companies they are considering investing in, it doesn’t always give an accurate picture ...

The liquidity coverage ratio requires banks to hold enough high-quality liquid assets (HQLA) – such as short-term government debt – that can be sold to fund banks during a 30-day stress scenario ...

Reserve Bank's new Governor Sanjay Malhotra announced a deferment of the liquidity coverage ratio, aiming for a phased ...

and introducing liquidity coverage ratio (LCR) for NBFCs with assets of Rs 10,000 crore and above. The final guidelines postpone the start date of implementation of the LCR norm to December 1 ...

These ratios generally fall within one of four types of measurements: profitability, liquidity, solvency, and valuation. Understanding and applying ratios from all of these categories can enable ...