Liquidity ratios are a class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital.

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 ...

A company's cash turnover ratio measures how many times per year it replenishes its cash balance with its sales revenue. A higher cash turnover ratio is generally better than a lower one. Analyzing ...

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 ...

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 ...

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 ...

Learn how to tell if your business could be facing a cash crunch—and what to do about it ...

P/CF multiples are calculated with a similar approach to what is used in the other price-based metrics. The P, or price, is simply the current share price of the firm. In order to avoid volatility in ...