Liquidity
Learn what liquidity is, when a liquidity test is required, and how to determine Current Ratio, Acid Ratio or Cash Ratio.
Liquidity: Introduction
Module 1 of 5
Get an overview of the three types of liquidity tests: the Current Ratio, Acid Ratio and Cash Ratio.
Liquidity: Current Ratio
Module 2 of 5
The Current Ratio indicates a company’s ability to pay its current liabilities from its current assets. Learn the formula for calculating the Current Ratio and when it is required to process loan files.
Liquidity: Acid Ratio
Module 3 of 5
Learn how the Acid Ratio is used to measure how well a company can meet its short-term obligations with its most liquid assets.
Liquidity: Cash Ratio
Module 4 of 5
Learn the formula for calculating the Cash Ratio—the most stringent measurement of a company’s liquidity.
Liquidity: Check Your Understanding
Module 5 of 5
Now that you’ve completed this course, test your knowledge.