What ratios measure a corporation's liquidity?

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What ratios measure a corporation's liquidity?

Nov 10th, 2015

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The current ratio is the best measure of a corporation's liquidity. It takes into consideration whether a company's short-term assets are able to offset any short-term obligations.

The quick ratio is also another measure albeit tougher as the corporation's inventory and prepaid expenses are not considered.

The cash ratio can also be used to measure a corporation's liquidity. 


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Nov 10th, 2015

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