To calculate a company’s quick ratio, divide the value of its most liquid assets (i.e., those that can be converted to cash in under three months) by the value of its current liabilities (i.e ...

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

Calculating total current assets and total ... The most common liquidity ratios used are the current ratio, quick ratio, and the cash ratio. These ratios are calculated using a company's current ...

This calculation highlights the steadiness of returns, helping investors refine their strategies. A financial advisor can help you combine the K-Ratio with other analyses to provide a more ...

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 ...

Since the quick ratio doesn’t include inventory in its calculation, it may be a better liquidity indicator in some situations. Similarly, not all companies have stable sales over the course of ...