The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

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 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 liquidity, ...

Most professional investors who have been investing for a long period can identify undervalued stock with the capacity to appreciate at a price in the short or long term. They believe that if you ...

Why should I care about my stock's Current Ratio or Inventory Turnover? What about its Cash Conversion Cycle or Cash Ratio? In the article below, I explain why using liquidity ratios can help find ...

Biotech stocks don't come with labels that warn investors of potential dangers ahead. There is something that comes close, though. The current ratio is a key metric that measures the liquidity of a ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Chip ...

Investors should beware of Southwestern Energy, Range Resources, and Cabot Oil & Gas as the trio have some of the worst quick and current ratios among natural gas stocks. A closer look at the numbers ...

If there is one lesson to be learned from the deep drop in oil prices over the past year, it's that liquidity matters. We see this by digging deep into the oil stocks that were absolutely pulverized ...