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In risk analysis, any ratio that measures a company's leverage. One example of a gearing ratio is the long-term debt/capitalization ratio, which is calculated by taking the company's long-term debt and dividing it by its long-term debt added to its preferred and common stock.
Liquidity Ratios (Current Ratio, Quick Ratio, and Others) Liquidity is a measure of how quickly a firm is able to convert its assets into cash. While analyzing the liquidity position of a company, an analyst uses the common liquidity ratios to measure the companyâs ability to pay-off its short-term liabilities. There are four important liquidity ratios: Current Ratio.