GUIDE深度 · Deep dive
Liquidity and Solvency Ratios
Current ratio = current assets/current liabilities; quick ratio = (cash+receivables)/current liabilities; debt ratio = liabilities/assets. The first two measure short-term liquidity; the third measures leverage.
Formulas
Current = CA/CL.
Quick = (cash+AR)/CL.
Debt = TL/TA.
Reading
Current >1 usually means better short-term coverage.
Very high ratios can also mean idle inventory/cash.
Compare ratios within the same industry; a current ratio that is normal for retail may be low for manufacturing.
FAQ
Why exclude inventory?
Inventory is slower to convert to cash, so quick ratio is more conservative.
Is a lower debt ratio always better?
Not always; moderate leverage can raise ROE but adds risk.