The acid-test ratio is a financial metric that assesses a company’s ability to cover short-term liabilities with its most liquid assets. A higher acid-test ratio suggests a stronger liquidity position ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

Opinions expressed by Entrepreneur contributors are their own. Everything in business is relative. The numbers for your profits, sales, and net worth need to be compared with other components of your ...