Clear All Current ratio A measure of a company's ability to pay its short-term liabilities out of short-term assets Debt ratio A measure that compares only the most liquid assets to current liabilities Times-interest-earned ratio An income statement measure of the ability of a company to service its debts Quick ratio A measure of the degree of protection afforded creditors in case of insolvency Debt-to-equity ratio A ratio that indicates what proportion of equity and debt a company is using to finance its assets