The quick ratio compares the value of a company's most liquid assets to the value of its current liabilities so investors can get a sense of how well it can cover its expenses in the short term.

What Is the Cash Ratio? A company's cash ratio is an indicator of its liquidity. That is, it estimates the company's ability to meet its short-term obligations. The formula for cash ratio is the ...

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 ...

The ratio's numerator is the difference between ... on one of those extremely rare and unfortunate occasions, its long-term Sharpe might still look good: just one bad month, after all.

What Is the Concentration Ratio? The concentration ratio, in economics, is a ratio that indicates the size of firms in relation to their industry as a whole. Low concentration ratio in an industry ...

By focusing only on systematic risk, the Treynor ratio allows investors to assess how much return they are getting for each unit of market risk taken. It can offer a clearer view of risk-adjusted ...

The gold-silver ratio provides insight into the relationship between gold and silver prices. As the price of gold per ounce continues to rise, it can be costly to get in if you want to buy physical ...

Ratios compare expenses to income and help insurers adjust when necessary. For this reason, the term "ratio" is extremely popular in insurance companies. Just as you insure yourself against loss ...

A high inventory turnover ratio typically means your business is managing stock efficiently. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...

Ratios of 1 or higher indicate short-term solvency. Because the current ratio compares short-term assets directly to short-term liabilities, a ratio of 1 or more indicates that a company would be ...

The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio ...