Foundations On-Demand Learning - Liquidity


Introduction to Liquidity
(module 1 of 4)

This series is designed to provide you an overview of the three types of liqiuidty tests: the Cash Ratio, Acid Ratio and Current Ratio.

Current Ratio
(module 2 of 4)

The Current Ratio indicates a company’s ability to pay its current liabilities from its current assets. It is done to quickly measure the liquidity of a company. In this video, you will learn the formula for calculating the Current Ratio and when it is required to process loan files.

Acid Ratio
(module 3 of 4)

In this video, you will learn about the Acid Ratio and how it is used to measure how well a company can meet its short-term obligations with its most liquid assets.

Cash Ratio
(module 4 of 4)

The cash ratio is the most stringent measurement of a company's liquidity. In this video, you will learn the formula for calculating the Cash Ratio.

Check for Understanding

Now that you've completed this course, test your knowledge!