Financial Ratios

Liquidity or Solvency Ratios

Measure an organization's liquidity - that is- the ability of its current assets to meet current liabilities as they come due. A liquid organization is a more flexible, less risky business.

• Current Ratio
• Acid-Test Ratio
• Working Capital to Total Assets Ratio
• Defensive-Interval Ratio

A ratio is a relationship of one amount to another. Evaluate the financial strength or weakness of your Company and its operating trends utilizing ratios. Ratios on their own may not mean much; use them to compare one periods of activity, or to compare your organization's ratios to industry standards or its major competitor.