This post is filled with measurements that are of considerable use to lenders, investors, and investment analysts. The measures are used to evaluate a company’s viability. This is accomplished by examining a company’s ability to collect accounts receivable in an efficient manner, use its inventory within a short time frame, pay its accounts payable when due, and maintain a sufficient amount of liquid funds to pay off short-term liabilities.



The liquidity measurements in this post lists:

Accounts Receivable Turnover
Average Receivable Collection Period
Days Delinquent Sales Outstanding
Day’s Sales in Receivables Index
Accounts Receivable Investment
Ending Receivable Balance
Inventory to Sales Ratio
Inventory Turnover
Inventory to Working Capital Ratio
Liquidity Index
Accounts Payable Days
Accounts Payable Turnover
Current Ratio
Quick Ratio
Cash Ratio
Sales to Current Assets Ratio
Working Capital Productivity
Defensive Interval Ratio
Current Liability Ratio
Required Current Liabilities to
Total Current Liabilities Ratio
Working Capital to Debt Ratio
Risky Asset Conversion Ratio
Non-current Assets to Non-current Liabilities Ratio
Short-term Debt to Long-term Debt Ratio
Altman’s Z-Score Bankruptcy Prediction Formula


And here is the formula list:

Liquidity Measurement Ratio Formula-1

Liquidity Measurement Ratio Formula-2

Liquidity Measurement Ratio Formula-3

Liquidity Measurement Ratio Formula-4

Liquidity Measurement Ratio Formula-5

Liquidity Measurement Ratio Formula-6

More measurement ratio formula you may want to know as well:

Asset Utilization Measurements (Ratios)

Operating Performance Measurements (Ratios)

Cash Flow Measurements (Ratios)

Capital Structure and Solvency Measurements (Ratios)

Return on Investment Measurements (Ratios)

Market Performance Measurements (Ratios)

Measurements and Ratios For Financial and Accounting Department

Measurements and Ratios For Engineering Department

Measurements and Ratios For Logistics Department

Measurements and Ratios For Production Department

Measurements and Ratios For Sales Departments