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    Liquidity Ratios

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    What are liquidity ratios and who are the primary users of the ratios? Why they are important from a relative comparison approach (explain)? How might an investor use liquidity ratios when making investment decisions for stocks and bonds only?

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    Liquidity ratios can be defined as the capability of firm or company to pay its current liability with the help of its liquid (current) asset.

    The Liquid ...

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