To calculate a company’s quick ratio, divide the value of its most liquid assets (i.e., those that can be converted to cash in under three months) by the value of its current liabilities (i.e ...

The current ratio is a metric used by the finance industry to assess a company's short-term liquidity. It reflects a company's ability to generate enough cash to pay off all debts should they ...

One of the more commonly used ratio is the acid-test ratio, or quick ratio. Image source: Getty Images. The acid-test ratio is a version of the current ratio, but it only includes the most liquid ...