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Jeremy tells his mother that he's afraid he will fail his chemistry class. She recommends that he contact his professor immediately. Her advice is
Current Ratio
A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.
Liquid
Describes assets that can be easily and quickly converted into cash without significant loss in value.
Quick Ratio
A liquidity measure that indicates a company's ability to pay its current liabilities without needing to sell inventory, calculated as (current assets - inventory) / current liabilities.
Liquidity Measures
Financial metrics used to determine how quickly a company can turn its assets into cash to meet short-term obligations. Common measures include current ratio and quick ratio.
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