Liquidity is a financial term used to describe how easily an asset can be turned into cash, and for small businesses, it shows how likely a company will be to meet its short-term obligations. Small ...

One of the key indicators investors use to assess a company's financial health is the liquidity ratio. This financial metric provides insight into a company’s ability to meet its short-term ...

Why should I care about my stock's Current Ratio or Inventory Turnover? What about its Cash Conversion Cycle or Cash Ratio? In the article below, I explain why using liquidity ratios can help find ...

Also known as liquidity ratios, liquid ratios measure how well a firm can use its short-term assets to meet its short-term debt obligations. Business managers can use several different liquidity ...

If you are an investor, the current ratio is a measure you’ll likely want to use to analyze the companies in which you are considering investing. The current ratio is a liquidity measure. It ...

The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its current debt. Current debt includes any liabilities coming due within a year, like accounts payable and ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Charlene ...

Peter Gratton, Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at Multex (Reuters) ...

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past ...

Using liquidity ratios can help investors find struggling businesses that may be inefficiently managed and ultimately help increase stock returns. I always found it frustrating in school when finance ...

Using liquidity ratios can help investors find struggling businesses that may be inefficiently managed and ultimately help increase stock returns. I always found it frustrating in school when finance ...