Liquidity ratio

by Richard C. Wilson on November 8, 2011

Below please find a definition of “Liquidity ratio”

Financial Analysis Training & Glossary TermsDefined Term – Liquidity ratio: Liquidity ratio is a way of measuring a company’s liquidity and ability of the company to pay off its short-term debts. The liquidity ratio could be measured in several different ways, e.g. current ratio, acid test ratio and inventory turnover.

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Tags: Liquidity ratio, Acid test ratio, Inventory turnover, What is liquidity ratio, Liquidity ratio definition, Defining liquidity ratio, Ratio, Liquidity

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