quick-ratio

Quick Ratio

This post will take a dive into the concept of the quick ratio, its interpretation, and an example of the same. The quick ratio, commonly referred to as the acid-test ratio, measures the ability of a business to pay its short-term liabilities using only the current assets that are readily convertible into cash. These ‘quick’ […]

current-ratio

Current Ratio

The current ratio, commonly referred to as the current liquidity ratio or the working capital ratio, is one of the most important liquidity measures to assess a business’ performance. This post will take a dive into the concept of the current ratio, its interpretation, and an example of the same. The current ratio measures a […]