BALANCE SHEET RATIOS (Liquidity)
- Current Ratio (Solvency) divide Current Assets by Current Liabilities to measure dollars of assets per dollar of debt shows ability to pay debts.
- Quick Ratio (Liquidity) divide Cash plus Accounts Receivable by Current Liabilities to measure CASH available to pay debts show ability to quickly pay debts.
- Debt-to Worth (Safety) divide Total Liabilities by Net Worth to measure Dollars of Liabilities per dollar of net worth
- Working Capital divide Current Assets minus Current Liabilities by Sales to measure ability to pay short term debt
- Cash divide Cash plus equivalents by Total Assets to measure CASH as a percent of total assets