Can you define what a liquidity ratio is and give me a few examples?© BrainMass Inc. brainmass.com June 3, 2020, 9:52 pm ad1c9bdddf
Liquidity ratios are a class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. Common liquidity ratios include the current ratio, the quick ratio and the operating cash flow ratio. Different analysts consider different assets to be relevant in ...
Define a liquidity ratio, and give examples