The current ratio is a liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.
 | | Term of the Day | Words to Know | | |  | | Current Ratio | | The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables. | | Read More » | | Related to "Current Ratio" | | | | SPONSORED BY INVESCO | | The Complete Guide to ETFs | | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | | Learn More » | | | Sign Up for 'Chart Advisor' | | Want more Investopedia market news? Investopedia's expert analysts present market performance for the day and discuss with in-depth charting and technical analysis, a must read for traders. | | Subscribe» | | | Current Assets | | Current assets are a balance sheet item that represents the value of all assets that can reasonably be expected to be converted into cash within one year. | | Read More » | | | Working Capital | | Working capital, also known as net working capital (NWC), is a measure of a company's liquidity, operational efficiency and short-term financial health. | | Read More » | | | Accounts Receivable | | Accounts receivable is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. | | Read More » | | | Liquidity Ratio | | Liquidity ratios are a class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
No comments:
Post a Comment