Liquidity Ratio
Definition of Liquidity Ratio
Liquidity ratio is a financil ratio used to measure a company's ability to meet it's short term debt obligations without resorting to external financing. They include quick ratio (measure the ability to meet short term obligations with liquid assets), current ratio (measures the ability to pay off short term obligations with cash) and cash ratio (measures the ability to pay off short term obligations with cash / cash equivalents)
