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What is a financial statement analysis ratio that includes current liabilities in the calculation?

What is a financial statement analysis ratio that includes current liabilities in the calculation?

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Financial statement analysis ratios- Are the numbers that tell the overall financial health of the company. Ratios are the indicators of financial well being, profitability, solvency and liquidity position of the company.

Financial statement analysis ratio that includes Current liabilities in calculation is the "Liquidity ratios".

Liquidity Ratios- These ratios tell the liquidity position of the company. Higher the ratio means that company is highly liquid and it is able to meet its short term obligations through short term assets.

Liquidity ratios that have current liabilities in calculation, are as following:

Current ratio = Current assets / Current liabilities

Quick ratio/Acid test ratio = Liquid assets / Current liabilities

Cash ratio = Cash & cash equivalents / Current liabilities

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