Discover the potential drawbacks of high liquidity ratios, and learn how to determine a healthy liquidity range for your ...

Profits may look good, but it's cash that pays the bills. As a small business owner, do you track the liquidity ratios of your business? You should be calculating these ratios on at least a weekly ...

Before you jump into any investment, it's important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn't ...

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 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The acid-test ratio is a financial metric that assesses a company’s ability to cover short-term liabilities with its most liquid assets. A higher acid-test ratio suggests a stronger liquidity position ...

When you’re evaluating a potential investment, you likely look at profitability and growth, but there is one fundamental concept you must master first: liquidity. Just as a household needs enough cash ...

In 2014, the Liquidity Coverage Ratio (LCR) was a much-needed response to the liquidity crises that exacerbated the global financial meltdown. The regulation requires banks to hold enough high-quality ...