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 ...

Kevin Matras explains how to use the Current Ratio as a financial health barometer. Stocks highlighted include HXL, MDC, MHK, SPF and TDG.

Carnival's Current Ratio. As the table shows, Carnival has not had a current ratio or quick ratio of more than 0.5 at any point over the last five year. Does this present a problem?

The current ratio is a measure of liquidity that lets investors know if a company can or cannot pay back its liabilities using its current assets. In this clip, ...

Current Ratio = $20 / $50 = 0.40; Quick ratio = ($20 - $10) / $25 = 0.20; Relative to Company Y, Company X has a high degree of liquidity with the ability to cover its current liabilities three ...

Current ratio formula. The current ratio is calculated by dividing the value of a company’s tangible assets by the value of its liabilities. Tangible assets can be converted into a monetary value – ...

Mathematically, current ratio is a company’s current assets divided by its current liabilities. In practical terms, it’s a quick way for investors to gauge a company’s liquidity.

The acid-test ratio is a measure of a company's liquidity, although it is mostly used when a company is believed to be illiquid. It is a ratio that measures a company's ability to meet its current ...

Ratios like the acid test and current ratio help determine a firm's liquidity. Solvency, although related, refers to a company's ability to instead meet its long-term debts and other such obligations.