Liquidity ratios are of particular importance to stockholders, but have little relevance for creditors.

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Liquidity ratios are actually very relevant for creditors as they assess a company's ability to pay its debts on time. Creditors want to ensure that a company has enough liquid assets to meet its debt obligations, especially in the short-term, and will often use liquidity ratios as part of their assessment.

Liquidity Ratios Are of Particular Importance to Stockholders, but Have