Report Analysis - How to Read the Statements

Operating Cash Ratio

Far and above the most valuable liquidity ratio is the operating cash ratio.  Unlike the other liquidity ratios that are balance sheet derived, the operating cash ratio is more closely connected to activity (income statement […]

Report Analysis - How to Read the Statements

Cash Ratio

One of the liquidity ratios used in business is the cash ratio.  It is a much more effective tool for small business than the traditional current or quick ratio.  Although the cash ratio is more difficult to […]