Liquidity Ratios¶

Measures a company's ability to meet short-term obligations.

Coverage Ratios¶

`current_ratio`¶

current_ratio(current_assets, current_liabilities) -> float | None

Formula: Current Assets / Current Liabilities. Healthy range: 1.5–3.0.

`quick_ratio`¶

quick_ratio(cash, short_term_investments, accounts_receivable, current_liabilities) -> float | None

Formula: (Cash + ST Investments + Receivables) / Current Liabilities. Excludes inventory.

`cash_ratio`¶

cash_ratio(cash, short_term_investments, current_liabilities) -> float | None

Formula: (Cash + ST Investments) / Current Liabilities. Most conservative liquidity measure.

`operating_cash_flow_ratio`¶

operating_cash_flow_ratio(operating_cash_flow, current_liabilities) -> float | None

Formula: OCF / Current Liabilities. Uses actual cash generation rather than accrual-based balances.

`defensive_interval_ratio`¶

defensive_interval_ratio(cash, short_term_investments, accounts_receivable, daily_operating_expenses) -> float | None

Formula: (Cash + ST Investments + Receivables) / Daily Operating Expenses. Days the company can operate without additional revenue.

Working Capital Cycle¶

`dso` — Days Sales Outstanding¶

dso(accounts_receivable, revenue, days=365) -> float | None

Formula: Accounts Receivable / Revenue × Days. Lower is faster collection.

`dio` — Days Inventory Outstanding¶

dio(inventory, cogs, days=365) -> float | None

Formula: Inventory / COGS × Days. Lower means inventory turns faster.

`dpo` — Days Payable Outstanding¶

dpo(accounts_payable, cogs, days=365) -> float | None

Formula: Accounts Payable / COGS × Days. Higher means longer to pay suppliers.

`cash_conversion_cycle`¶

cash_conversion_cycle(dso_days, dio_days, dpo_days) -> float | None

Formula: DSO + DIO − DPO. Negative CCC (e.g. Amazon, Costco) means suppliers fund operations.

TypeScript¶

import { currentRatio, quickRatio, cashConversionCycle } from 'fin-ratios'

currentRatio({ currentAssets: 120e9, currentLiabilities: 80e9 })  // 1.5

quickRatio({
  cash: 30e9,
  shortTermInvestments: 10e9,
  accountsReceivable: 20e9,
  currentLiabilities: 80e9,
})  // 0.75

cashConversionCycle({ dso: 45, dio: 60, dpo: 30 })  // 75

Liquidity Ratios¶

Coverage Ratios¶

current_ratio¶

quick_ratio¶

cash_ratio¶

operating_cash_flow_ratio¶

defensive_interval_ratio¶