Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...

“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...

Liquidity ratios assess if a company can cover short-term debts with available assets. Key ratios include cash, quick, current, and operating cash flow ratios. A liquidity ratio over 1 suggests a ...