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Function documentationLiquidity Analysis Ratios Locate this document in the navigation structure

 

Liquidity analysis ratios are ratios of assets versus liabilities. These ratios indicate a company's ability to cover short-term obligations.

Features

Liquidity analysis ratios include the following:

  • CurrentRatio

    Calculates the current ratio, which is a general indicator of the business's ability to meet its short-term financial commitments. This ratio assumes that all current assets, if required, can be converted to cash to meet all current liabilities immediately.

    *function CurrentRatio(%CURRENTASSET%,%CURRENTLIAB%)

    iif(%CURRENTLIAB%=0,Null,%CURRENTASSET%/%CURRENTLIAB%)

    *endfunction

  • QuickRatio

    Calculates a quick ratio, also called the acid test ratio. A quick ratio is a current ratio modified to provide a more prudent measure of short-term liquidity.

    *function QuickRatio(%CASH%,%ACCREC%,%CURRENTLIAB%)

    iif(%CURRENTLIAB%=0,Null,(%CASH%+%ACCREC%)/%CURRENTLIAB%)

    *endfunction

  • NetworkCapRatio

    Calculates the net working capital ratio, which is another indicator of a company's ability to satisfy short-term debt.

    *function NetWorkCapRatio(%CURRENTASSET%,%CURRENTLIAB%,%TOTALASSET%)

    iif(%TOTALASSET%=0,Null,(%CURRENTASSET%-%CURRENTLIAB%)/%TOTALASSET%)

    *endfunction

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