39.Use+quick,+current,+and+debt+ratios+to+analyze+a+balance+sheet.

Quick Ratio: An indicator of a company's short-term liquidity. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better the position of the company.

Calculated as:

Current assets- Inventories

__Current Liabilities__

__Current Ratios: Ability of a company to pay short term obligations__

__Calculated as:__

__Current Assets__

Current Liabilities

Debt Ratios:

A ratio that indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load.

A debt ratio of greater than 1 indicates that a company has more debt than assets, meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.

Calculated as:

Total Debt/Total Assets