Understand what the current ratio measures, why it matters, and how to use it to assess and improve short-term liquidity.

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The current ratio is calculated by dividing a company’s current assets by its current liabilities. Ratios of 1 or higher indicate short-term solvency. It’s important to keep in mind that the current ...

Financial ratios allow you to break down your company's financial statements and see how it is performing from different angles. Whether you are creating a proposal for new investors, seeking bank ...

Current liabilities are debts due within a year, including accounts payable and short-term loans. A high current ratio, above 1, suggests a company can meet short-term financial obligations. Investors ...

You might feel a little overwhelmed by the many facts and figures used to evaluate a corporation's financial condition. One of the figures that you need to calculate and understand is the return on ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education ...

Use the Sharpe ratio to evaluate an asset's risk vs. return Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple ...