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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.
What is the 'Quick Ratio'. The quick ratio is an indicator of a companyâs short-term liquidity. The quick ratio measures a companyâs ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets, and is calculated as follows: Quick ratio = (current assets â inventories) / current liabilities, or.