See how we rate investing products to write unbiased product reviews. The current ratio measures a company's capacity to pay its short-term liabilities due in one year. The current ratio weighs a ...

They include the current ratio, the quick ratio, and the days sales outstanding ratio. In general, a higher liquidity ratio shows a company is more liquid and has better coverage of outstanding debts.

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.