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 ...

Short-term debt is a financial obligation that is expected to be paid off within a year. Such obligations are also called ...

The acid-test ratio is a financial metric that assesses a company’s ability to cover short-term liabilities with its most liquid assets. A higher acid-test ratio suggests a stronger liquidity position ...

Liquidity ratios are tools that show how well an organization can meet its short-term obligations, like rent, payroll, and immediate operating expenses. In the for-profit world, these ratios help ...

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 ...

Learn about the Degree of Relative Liquidity (DRL), a metric that assesses how well a company can manage short-term obligations and expenses through available cash flow.

Banks urge RBI to delay new liquidity coverage ratio rules and recognize cash reserves as high-quality liquid assets.

In 2014, the Liquidity Coverage Ratio (LCR) was a much-needed response to the liquidity crises that exacerbated the global financial meltdown. The regulation requires banks to hold enough high-quality ...

Short-term debt includes obligations like bank loans that are due within a year. High short-term debt can signal potential financial instability. Effective management of short-term debt is crucial for ...