Liquidity Ratios Analysis
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This calculator helps you to measure the most important liquidity ratios for your company: working capital, quick ratio, acid test ratio, cash ratio and current ratio.
These ratios examine the availability of company's assets to pay its shortterm debt. A higher value of the ratio means that the business has a higher margin of safety to pay its shortterm liabilities. It can also be a signal that the company might be able to expand its operations.
Liquidity Ratios Analysis is part of the Online financial ratios calculators, complements of our consulting team.
Terms of use
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Definitions and terms used in Liquidity Ratios Analysis
 Cash
 Refers to money in the physical form of currency. Cash includes money in the cash pan, petty cash, cash in the locker, bank account and customers' checks.
 Marketable Securities
 A nearcash (liquid) assets in the form of equity or debt instrument (share/stock, bond or note) that are listed on an exchange and can be readily bought or sold.
 Accounts Receivable
 Money owed to a company by customers (individuals or corporations) for goods or services that have been delivered or used, but not yet paid for. In it is also known as Sales on credit.
 Current Assets
 The assets that are expected to be converted into cash or otherwise used up within a year or one business cycle (whichever is longer). Typical current assets include cash and cash equivalents, accounts receivable, inventory, marketable securities, the portion of prepaid expenses which will be used within a year and other assets that could be converted to cash in less than one year.
 Current Assets = Cash + Bank + Accounts Receivable + Marketable Securities + Inventory + Prepaid Expenses
 Current Liabilities (short term debt)
 Obligations or debts that are due within one fiscal year or the operating cycle. For example, accounts payable, accrued liabilities, dividends, unpaid taxes and other debts that are due within one year.