Definition
Liquid current assets divided by current liabilities.
Why it’s relevant today
Inventory uncertainty makes stricter liquidity measures useful.
Why it matters
It tests obligations without assuming inventory can be sold readily.
Liquid current assets divided by current liabilities.
Inventory uncertainty makes stricter liquidity measures useful.
It tests obligations without assuming inventory can be sold readily.
Discussion
Sign in to upvote, join the discussion, and keep track of what you learn.
Start the discussion with a question, example, or useful connection.