The main purpose of liquidity ratios is to determine whether a company will be able to repay its debts as they come due.

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Liquidity ratios, such as current ratio and quick ratio, primarily focus on a company's ability to meet its short-term financial obligations, including paying back its debts. Therefore, the main purpose of these ratios is indeed to assess whether a company can repay its debts as they come due.

The Main Purpose of Liquidity Ratios Is to Determine Whether