A company's cash turnover ratio measures how many times per year it replenishes its cash balance with its sales revenue. A higher cash turnover ratio is generally better than a lower one. Analyzing ...

Before you jump into any investment, it's important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn't ...

Learn how to tell if your business could be facing a cash crunch—and what to do about it ...

P/CF multiples are calculated with a similar approach to what is used in the other price-based metrics. The P, or price, is simply the current share price of the firm. In order to avoid volatility in ...

Profits may look good, but it's cash that pays the bills. As a small business owner, do you track the liquidity ratios of your business? You should be calculating these ratios on at least a weekly ...

Companies with outsized problems sometimes offer outsized dividends to keep shareholders happy while their share prices don’t. So the key question for any investor chasing a stand-out dividend should ...

“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...

Discover the potential drawbacks of high liquidity ratios, and learn how to determine a healthy liquidity range for your ...