Current Ratio: Calculated as Current Assets / Current Liabilities, this ratio reflects the capacity of a firm to pay off its short-term debt commitments by using available assets.
Quick Ratio (Acid-Test): It does not include inventory in the current assets and is calculated as (Current Assets-Inventory) / Current Liabilities. It measures liquidity more strictly.
Cash Ratio: This is the most stringent liquidity measure since it is Cash and Cash Equivalents / Current Liabilities, which is concerned strictly with cash assets.
Leverage Ratios: Leverage ratios determine whether a company is operating highly leveraged or low leverage.