A company's cash turnover ratio measures how many times per year it replenishes its cash balance with its sales revenue. A higher cash turnover ratio is generally better than a lower one. Analyzing ...

No matter how profitable a business, if it can't pay its bills as they come due, it's going to run into trouble. Therefore, the liquidity of a company -- how easily it can meet its upcoming ...

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

Discover the potential drawbacks of high liquidity ratios, and learn how to determine a healthy liquidity range for your ...

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't ...

Liquidity refers to the ease with which a security or asset can be converted into cash. A truly liquid asset can be converted into cash without its value dropping significantly. Therefore, the most ...