Quick Ratio = (Current Assets - Inventories) / Current Liabilities* Some analysts also deduct prepaid expenses in calculating a Quick Ratio For example: Current assets = $50,000 Inventory = $20,000 ...

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 ...

In general, the higher the ratio, the greater a company's liquidity. Typically, current ratio lies between 1 and 1.5, although it varies between industries. Lenders may require at least 1.5.

Current assets include cash, inventory and accounts receivable. Current liabilities include accounts payable and current debt. A healthy current ratio ranges from 2 to 2.5.

Cash ratio only looks at assets that are already liquid and excludes receivables and inventory. Cash plus short-term marketable securities divided by current liabilities gives you the cash ratio.

The current ratio provides a good indication of a company's ability to cover its short-term liabilities. It's a measure of all current assets that can be turned into cash quickly and used to pay ...

Indeed, Norwegian has a ratio of less than 0.5 - Carnival's current ratio is not a problem, but Norwegian's could be. Data Source: Saxo Capital Markets, Marketwatch, Carnival ...

Apple’s current ratio was higher than its quick ratio as of the end of March 2021. According to Apple’s current ratio, it had more than enough liquid assets to cover its liabilities for the ...

Presently, the median current ratio for the stocks in the S&P 500 is 1.65. How to Use Screening for this is quite easy to do. You can screen for this on Zacks' free custom screener on Zacks.com ...

For example, if a firm had $130,000 in marketable securities, $110,000 in cash, and $200,000 in current liabilities, the cash asset ratio would be (130,000+110,000)/200,000 = 1.20.