A balance-to-limit ratio is the amount of money you owe on your credit cards compared to your credit limit. Learn how lenders use a balance-to-limit ratio.

The acid-test ratio measures a company's ability to cover short-term liabilities with its most liquid assets. A ratio above 1 suggests good liquidity; below 1 indicates potential payment struggles ...

The acid-test ratio is a financial metric that assesses a company’s ability to cover short-term liabilities with its most liquid assets. A higher acid-test ratio suggests a stronger liquidity position ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Doretha Clemons, Ph.D., MBA, PMP, has been a corporate IT executive and professor for 34 ...

Insurance Accounting Terms and Combined Ratio. Insurance companies must save a certain percentage of the premiums they receive to pay for claims. The amount set aside, ...

Solvency ratios are measures of how well a business can pay its debt, and how much debt it has accrued compared to its assets. Learn why this matters inside.

One of these terms is "loan-to-value ratio", which is often simply referred to as LTV. When applying for a home loan, the LTV can make a big difference in what type of mortgage you're eligible for ...

Investors often look at earnings to determine whether a stock or a fund will increase in value. Since stocks are riskier than cash and bonds, investors expect higher returns from equities. The ...

The acid-test ratio is a financial metric that assesses a company’s ability to cover short-term liabilities with its most liquid assets. A higher acid-test ratio suggests a stronger liquidity ...