This week, I'm focusing on another ratio to help gauge a company's financial health: the Current Ratio. It's calculated by dividing current assets by current liabilities. The higher the ratio, the ...

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Unlike the cash conversion cycle (CCC), which is a function of three days ratios, the current ratio is simply the total current assets (TCA) over the total current liabilities (TCL). However, the ...

When a business offers credit to a favorite customer, loyalty and the desire to make the sale often play roles in the move. But one thing the financial crisis taught American businesses is that it’s ...

Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

Discover crucial financial ratios for evaluating automotive companies, including debt-to-equity, inventory turnover, and ...

Learn to analyze manufacturing companies with key financial ratios for profitability and efficiency. Gauge inventory turnover, maintenance costs, and more to make informed investments.

A company needs to have enough liquidity to meet its short-term financial obligations or else it won't be successful. The current ratio is an accounting metric that provides one measure of liquidity.

Current ratio is a measure of liquidity, which compares a company's current assets with its current liabilities. Current ratio is a favored test among banks and lenders because it reveals whether a ...