Liquidity and solvency ratios work together, but they shouldn't be used interchangeably since their concepts are quite different. Liquidity is the ability for a company to pay off its short-term ...

Before you jump into any investment, it's important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn' ...

Using liquidity ratios can help investors find struggling businesses that may be inefficiently managed and ultimately help increase stock returns. I always found it frustrating in school when ...

Liquidity is the ability of a business to meet its short-term financial obligations. Several common liquidity ratios are used to measure a business's overall financial picture. By measuring ...

The cash flow solvency ratio measures your company's ability to pay its debts. To calculate cash flow solvency, divide your company's total cash flow from operations by its total liabilities.

This report explains how “Adjusted” Cash to Debt ratio is better than the “Traditional” ratio because the Traditional ratio is based on unscrubbed financial data.

Learn about the working capital ratio, a basic liquidity measurement for representing the current relationship between a company's assets and liabilities.

The ratio shows the portion of cash flow, after capital expenditures and preferred dividends payments, that a company uses to make its common stock dividend payments.

Learn what solvency is, how it affects financial health and operations, and explore essential solvency ratios to assess a company's long-term debt management effectively.

That equates to a total-debt-to-total-cash ratio of 0.018, which in my opinion is a very positive catalyst moving forward.