A current ratio of 1.5 to 1 is generally regarded as ideal for industrial companies, as of 2014. However, the merit of a current ratio varies by industry. Typically, a company wants a current ratio that is in line with t... More »

A cash ratio of 1.0 for an organization means that the organization has enough cash on hand to cover its short-term obligations, while anything below 1.0 implies it has insufficient funds to cover its liabilities, accord... More »

Liquidity ratios refer to a firm's ability to meet its immediate financial obligations in terms of cash on hand and assets that can be sold quickly, while solvency ratios compare a firm's total assets to its total obliga... More »

The U.S. Division of Trading and Markets defines current assets as the resources that are reasonably expected to be sold for cash or other receivables within one calendar year. If the inventory for a business falls under... More »

The formula for unlevered beta is levered beta divided by the sum of one plus the product of the complement of the corporate tax rate times the company's debt to equity ratio. Unlevered beta gives the volatility of the c... More »

Asset utilization is a ratio used by business analysts to determine how well a company is using its available assets to generate a profit. Asset-utilization ratios are used to determine the profitability of everything fr... More »

To determine a debt-to-income ratio, a person divides the total of all monthly debt payments by monthly gross income, according to About.com. If the total debt is $1,500 and the total income is $4,000, for instance, the ... More »