CURRENT RATIO AND LIQUID RATIO SHOW
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The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.
Liquidity ratios are the ratios that measure the ability of a company to meet its short term debt obligations. ... They show the number of times the short term debt obligations are covered by the cash and liquid assets. If the value is greater than 1, it means the short term obligations are fully covered.
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