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 ...

A quick ratio is a metric used to calculate a company's liquidity and how easily it could pay off its debts. A quick ratio works by providing a relatively fast assessment of a company's financial ...

No matter how profitable a business, if it can't pay its bills as they come due, it's going to run into trouble. Therefore, the liquidity of a company -- how easily it can meet its upcoming ...

The acid-test ratio is a measure of a company's liquidity, although it is mostly used when a company is believed to be illiquid. It is a ratio that measures a company's ability to meet its current ...

Liquidity ratios reveal a company's capability to cover short-term debts using available assets. Important types include the cash ratio, quick ratio, current ratio, and operating cash flow ratio. A ...

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A quick glance at Wal-Mart's balance sheet reveals that the company cannot meet all of its bills falling due within 12 months, but should you be worried? Why is this important? Well, if a company's ...