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Liquidity Ratios

Module by: Rudy Lopes. E-mail the author

Summary: Liquidity Ratios measure a company's ability to pay short-term obligations of one year or less.

Current Ratio -- This interactive tutorial explains the current ratio by walking you through the steps, including where to find Current Assets and Current Liabilities on the Balance Sheet. It even lets you use your own numbers, so you can check your homework answers!

Quick Ratio -- This interactive tutorial explains the Quick Ratio (or Acid Test Ratio) concept, putting the ratio into its proper context by walking you through the calculations. It also shows you where to find each value on the corresponding financial statement, and even gives you the opportunity to enter your own values.

Liquidity Ratios Study Sheet -- Learn about liquidity ratios (current ratio and quick ratio) using this printable Smartacus Study Sheet.

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