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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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) ...

A good assessment of a company’s liquidity is important because a decline in liquidity leads to a greater risk of bankruptcy. FASB describes liquidity as reflecting “an asset’s or liability’s nearness ...

Investors should beware of Southwestern Energy, Range Resources, and Cabot Oil & Gas as the trio have some of the worst quick and current ratios among natural gas stocks. A closer look at the numbers ...

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 ...