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To compute the quick ratio, first add cash and cash equivalents, such as stocks or bonds. Then divide
this number by current liabilities, defined as liabilities due within one year. If the result is greater
than one, this ratio implies that the company has adequate cash to pay its bills. Compute the current
ratio in the same way, but add inventory to the asset.

The debt-to-assets ratio is a basic ratio that provides a snapshot of a company’s indebtedness. If the
result is greater than one, this ratio indicates a company has a positive net worth.