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 five categories of financial ratios are liquidity (solvency), leverage (debt), asset efficiency (turnover), profitability and market ratios. These ratios measure the return earned on a company’s capital and the profi... More »

Efficiency ratios are various types of ratios that determine how well a company uses its assets and resources to make a profit. Different types of efficiency ratios include the accounts receivable and accounts payable tu... More »

The internal growth rate of a firm is calculated by subtracting its rate of earnings retention from its return on assets, according to Boundless. A company's return on assets is derived from dividing its net income by it... 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 »

Profit is how much money a business is making once all expenses have been deducted; cash is the amount of money on hand to pay due bills. According to entrepreneur Stever Robbins, even a profitable business can fail if t... More »

Liquidity is the ability of a company or country to meet its near-term cash flow requirements. Solvency is the ability for a company or country to meet its long-term financial obligations. More »