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The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its current debt. Current debt includes any liabilities coming due within a year, like accounts payable and ...

There’s no universal safe or danger level. Ideal current ratios vary by industry. A current ratio of 1.0 means the company has $1 in current assets for every $1 in current liabilities. A ratio below 1 ...

Total liabilities are all the debts that a business or individual owes or will potentially owe. Does it accurately indicate financial health?

Company assets include both quickly sellable items and long-term holdings like real estate. Liabilities represent all debts, ranging from short-term bills to long-term loans. Stockholders' equity ...

Investors and lenders use financial ratios to gauge the strength and measure the performance of corporate businesses. Although privately owned small businesses do not engage in the full range of ...

A company's assets include everything of value the company has, such as cash, investments, or property. Assets are split into two categories: current assets and long-term assets. Current assets are ...

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 ...

One thing that separates fledgling investors from the pros is reading financial statements. For amateurs, comparing the so-called headline numbers — sales and earnings — to estimates is the full ...