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Current Ratio
A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.
Acid-Test Ratio
A financial metric that measures a company's ability to pay off its current liabilities with its quick assets such as cash, marketable securities, and accounts receivable.
Quick Ratio
A metric to evaluate a company's short-term liquidity position, calculated by dividing liquid assets by current liabilities.
Working Capital
The difference between a company's current assets and current liabilities, indicating the liquidity of the business.
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