4. Liquidity Ratios
Abschnittsübersicht
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Let's now turn to the most important financial ratios that we as analysts or managers should be familiar with. This section looks at Liquidity Ratios. These ratios tell us whether the firm is able to cover its short-term obligations with its "liquid" assets. We learn how to measure liquidity and how to interpret different liquidity ratios. In particular, we will get to know the current ratio, the quick ratio, as well as the cash ratio.