It represents a company’s liquidity, operational efficiency, and short-term financial health. Subtract a company’s current liabilities from its current assets to calculate working capital.

Reviewed by Charlene Rhinehart Fact checked by Suzanne Kvilhaug What Is a Liquidity Ratio? A liquidity ratio is a measurement ...

High trading volume and tight bid-ask spreads indicate a stock's high market liquidity. Accounting liquidity measures a company's ability to cover short-term obligations. Liquid stocks like Apple ...

The acid-test ratio, also known as the quick ratio, measures the liquidity of a company. Learn how to calculate acid-test ratio here.

It’s a very mechanical calculation. It just tells you how many days it would take to sell off the entire portfolio if the fund wanted to do that tomorrow," he said. Liquidity risk is an inherent ...