This key financial metric measures a company's liquidity by assessing its ability to meet short-term obligations using its cash and marketable securities.
In accounting, current liabilities are obligations of a company that are expected to be settled within one year or within the operating cycle, whichever is longer. Current liabilities are used to gauge a company’s short-term liquidity and are listed on the balance sheet.
A liquidity ratio is a metric used to determine a company's ability to pay off its short-term liabilities as they come due using its most liquid assets.
The Quick Ratio, also known as the Acid-Test Ratio or Liquid Ratio, is a measure of a company's ability to meet its short-term obligations using its most liquid assets.
