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What does the liquidity ratio include?

幫考網(wǎng)校2020-10-12 17:29:09
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The liquidity ratio includes the current ratio and the quick ratio. The current ratio measures a company's ability to pay its short-term debts with its current assets, while the quick ratio measures a company's ability to pay its short-term debts with its most liquid assets. Both ratios provide insight into a company's liquidity and ability to meet its financial obligations in the short term.
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