Learn about the quick ratio, a crucial liquidity metric that helps investors assess a company's ability to meet short-term obligations. Learn how to calculate and interpret it for smarter ...

If your business has quick assets of $20,000 and current liabilities of $25,000 you would divide $20,000 by $25,000 to get the quick ratio of 0.8 -- indicating that you may have trouble paying off ...

A company with a quick ratio of 1 suggests the company can pay off its debts in 90 days or less if needed. When the score dips below 1, the company does not have enough easily accessible assets on ...

A quick ratio tests a company’s current liquidity and solvency. It is a measure of whether the company can pay its short-term obligations with its cash or cash-like assets on hand. (Short term ...

It states the ratio the borrower must maintain during the life of the loan, for example, a DSCR of 1.20:1.00. It will define the covenant in the body of the document so there is no confusion as to ...

If you enjoyed this article, you might also want to check out this article on using the P/E ratio, and this one on the P/B ratio. U.S. Bancorp is an Income Investor recommendation.

At the same time, the company had $2.18 billion in current liabilities, giving it a quick ratio of 0.4, which looks like cause for concern. Based on that ratio, Carvana still faces liquidity ...