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If you are an investor, the current ratio is a measure you’ll likely want to use to analyze the companies in which you are considering investing. The current ratio is a liquidity measure. It ...

Working capital represents a company’s ability to pay its current liabilities with its current assets. The figure for working capital gives investors an indication of the company’s short-term ...

Current liabilities are short-term financial obligations due within a year. Investors use the current ratio to assess a company’s ability to meet these obligations. A current ratio above 1 suggests a ...

Company assets include both quickly sellable items and long-term holdings like real estate. Liabilities represent all debts, ranging from short-term bills to long-term loans. Stockholders' equity ...

You might feel a little overwhelmed by the many facts and figures used to evaluate a corporation's financial condition. One of the figures that you need to calculate and understand is the return on ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Chip Stapleton is a Series 7 and Series 66 ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education ...

Companies prefer raising funds through debt capital as it is cost-effective. In this way, they can save themselves from paying high-interest rates if they raise through financial institutions.

Calculate your net worth by subtracting your liabilities from your assets. There are some nuances to the calculation depending on what you're using it for. Knowing your net worth can help you make ...