Showing posts with label Liquidity Ratios. Show all posts
Showing posts with label Liquidity Ratios. Show all posts

Sunday, February 20, 2011

Liquidity Ratios

Liquidity ratios determine the company’s ability to pay its current obligations. 

Before investing in a company, investors would like to know whether the company is profitable enough to pay their bills and dividends on time. This is a short-term measure of the company’s performance in terms of how much cash they have available and how much of their assets are being financed with debt.