
Liquidity index definition — AccountingTools
Nov 12, 2025 · What is the Liquidity Index? The liquidity index calculates the days required to convert a company's trade receivables and inventory into cash. The index is used to estimate …
Liquidity definition — AccountingTools
Dec 9, 2025 · Here is a top-down ranking of market liquidity for ten types of assets, from most liquid to least liquid. Liquidity refers to how quickly and easily an asset can be converted into …
Liquidity ratios — AccountingTools
Apr 21, 2025 · Liquidity ratios are measurements used to examine the ability of an organization to pay off its short-term obligations. Liquidity ratios are commonly used by prospective creditors …
Order of liquidity definition — AccountingTools
6 days ago · Listing assets in order of liquidity, from most to least liquid, helps management and investors quickly assess how easily a company can convert assets into cash.
Balance sheet definition — AccountingTools
Sep 23, 2025 · The line items are presented in their order of liquidity, which means that the assets most easily convertible into cash are listed first, and those liabilities due for settlement soonest …
Financial statement analysis — AccountingTools
Sep 29, 2025 · It highlights whether performance metrics like profitability, liquidity, or efficiency are above, below, or in line with industry norms. This helps stakeholders identify competitive …
Acid-test ratio definition — AccountingTools
Jul 4, 2025 · Quick view of liquidity. The acid-test ratio provides you with a quick view of the liquidity of a business, without having to delve too deeply into its financial reports.
Working capital ratio — AccountingTools
Sep 5, 2025 · The working capital ratio is a key liquidity indicator because it shows whether a company’s current assets are sufficient to cover its current liabilities. A ratio above 1 suggests …
Terms L — AccountingTools
Liquidity Liquidity index Liquidity metrics (podcast) Liquidity ratio analysis Liquidity ratios List price Listing on a stock exchange Listing on a stock exchange (podcast) Livestock LLC accounting …
Summary | Financial Ratios — AccountingTools
Liquidity metrics Logistics metrics Operating performance metrics Payroll metrics Return on investment metrics Sales metrics Overview of Financial Ratios Accounting ratios Accounts …