Examples of current assets include ... This indicates improving short-term financial health. A more stringent liquidity ratio is the quick ratio. This measures the proportion of short-term ...

The current ratio assumes, for example, that inventory will always be turned into cash within a year. This may be true for many companies, but in certain industries and situations, inventory isn ...

cash equivalents, accounts receivable, marketable securities, inventory, and prepaid expenses). Returning to the example above, let’s take a look at how Apple’s current ratio (as of March 27th ...