The quick ratio, often referred to as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. It's calculated as (cash + ...

Sound financial management is necessary in a small business -- to make the most of your assets, you need to properly account for them. The quick ratio is a simple financial ratio that can help you to ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Amy is an ACA and the CEO and founder ...

Also known as liquidity ratios, liquid ratios measure how well a firm can use its short-term assets to meet its short-term debt obligations. Business managers can use several different liquidity ...

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...