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Simple English definitions for legal terms

liquidity ratio

Read a random definition: inner-city post-traumatic-stress defense

A quick definition of liquidity ratio:

Liquidity ratio: This is a way to measure how easily someone or a company can pay their bills. It looks at how much money they have in cash or things that can be quickly turned into cash, compared to how much they owe right now. The higher the ratio, the better the ability to pay off debts on time.

A more thorough explanation:

A liquidity ratio is a financial metric that measures the ability of a person or entity to pay off their current debts as they come due. It is calculated by dividing the amount of cash or liquid assets by the current liabilities.

Let's say a company has $100,000 in cash and short-term investments and $50,000 in current liabilities. The liquidity ratio would be:

Liquidity Ratio = ($100,000 / $50,000) = 2

This means that the company has twice as many liquid assets as it does current liabilities, indicating that it has a strong ability to pay off its debts in the short term.

Another example could be an individual who has $5,000 in a savings account and $2,000 in credit card debt. The liquidity ratio would be:

Liquidity Ratio = ($5,000 / $2,000) = 2.5

This means that the individual has 2.5 times more liquid assets than current liabilities, indicating that they have a good ability to pay off their debts in the short term.

liquidity | liquor offense

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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