#Liquidity101 Liquidity management is a critical part of financial planning and decision-making for businesses. It focuses on the company’s ability to meet its current obligations, which are usually short-term in nature.

Liquidity Ratios help measure this capability by analyzing the ratio of liquid assets (cash and accounts receivable) to current liabilities (debt due within a year), as reported on the balance sheet. Different types of Liquidity Ratios provide insight into various aspects of a company’s position, from quick ratio to cash ratio and more.

These formulas help assess whether or not the business has sufficient resources to cover its immediate expenses and obligations without compromising the cash flow. In this article, we’ll explore different Liquidity Ratios and their formulas and examine why they are essential for your business.#ETH（二饼）