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 + ...

How well can current assets cover current liabilities? Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Amy is an ACA and the ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

The number of times a business sells and replaces its stock over a given time period is its inventory turnover ratio. The inventory turnover ratio, also sometimes called stock turns or inventory turns ...

Recent data shows homes sold for 99.4% of asking price, indicating strong buyer leverage. The sale-to-list ratio, calculated by dividing selling price by asking price, gauges negotiation power. A ...

Subtracting your expenses from your income gives you your bottom-line financial profit but doesn't tell you how you're doing in different areas and how you can improve your operations. You should ...

One major factor lenders consider when reviewing your mortgage application is your debt-to-income ratio (DTI). Essentially, how much of your paycheck goes toward paying down debts. A lower DTI tells ...

Whether you’re a seasoned investor, or just starting out, one question that will probably be on your mind is whether an individual stock is cheap or expensive – a fact that can be revealed by its ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

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