Articles on Stock markets

News, Research and Analysis

Help Center
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement Accounts
Personal Finance
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

What is a Liquidity Ratio?

A liquidity ratio is also known as a current ratio, and it generally measures the amount of cash or readily available cash relative to current liabilities.

Liquidity ratios are important measures to test a company’s solvency, in addition to its potential ability to handle economic shocks.

Keywords: liabilities, assets, liquidity, current liabilities, current ratio, liquidity ratio, financial liquidity,