Liquidity Ratio: Definition, Calculation & Analysis
Higher-leverage ratios show a company is in a better position to meet its debt obligations than a lower ratio. This ratio reveals whether the firm can cover its short-term debts; it is an indication of a firm’s market liquidity and ability to meet cr...
Liquid Assets Examples
The term current refers to short-term assets or liabilities that are consumed (assets) and paid off (liabilities) is less than one year. The current ratio is used to provide a company's ability to pay back its liabilities (debt and accounts payable) ...
What is Budget? definition, features and classification
While many companies would say that they do both, in reality the investment of time and money falls squarely in one approach or the other. Over time, the use of line item budgets creates valuable statistical information that demonstrates trends and o...