The current liquidity of a company is measured by which of the following?

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The current ratio measures a company's ability to pay its short-term liabilities using its current assets. It is calculated by dividing current assets by current liabilities. A higher current ratio indicates that a company can easily meet its short-term financial obligations. Therefore, it is a good measure of a company's liquidity. Return on Sales ratio measures the profitability of a company, Return on Assets Ratio measures how effectively a company uses its assets to generate profits while Debt to Equity ratio measures the proportion of debt to equity financing that a company has.

The Current Liquidity of a Company Is Measured by Which