Liquidity ratios measure a firm's ability to finance its day-to-day operations and to pay its liabilities as they mature.

Name: Liquidity ratios measure a firm's ability to finance its day-to-day operations and to pay its liabilities as they mature.
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Liquidity ratios, such as the current ratio and quick ratio, assess a company's ability to meet its short-term obligations with its short-term assets, which is crucial for financing day-to-day operations and paying off liabilities when they are due.

Liquidity Ratios Measure a Firm's Ability to Finance Its Day-To-Day