The liquidity ratio indicates an organization's ability to meet its current debt obligations.

Name: The liquidity ratio indicates an organization's ability to meet its current debt obligations.
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The liquidity ratio is a financial ratio that measures an organization's ability to pay off its current debt obligations. It compares an organization's current assets to its current liabilities. A higher ratio indicates that the organization is more capable of meeting its short-term debt obligations.

The Liquidity Ratio Indicates an Organization's Ability to Meet Its