Three measures useful in assessing liquidity and the ability of a company to pay its current liabilities are ,the current ratio,and the quick ratio.

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1) Working capital is the difference between a company's current assets and its current liabilities. If a company has a positive working capital, it means that it has enough liquidity to meet its short-term obligations. Hence, it is a crucial measure to assess a company's liquidity.

2) Debt equity ratio is another essential measure to evaluate a company's financial health. It shows the proportion of debt and equity a company is using to finance its assets. A high debt-to-equity ratio indicates that a company is heavily relying on debt, which may impact its ability to pay its current liabilities.

3) Interest coverage ratio is the measure of a company's ability to pay its interest expenses on outstanding debt. If a company has a higher interest coverage ratio, it indicates that it can easily pay its interest expenses, which is a good sign for its liquidity position.

Therefore, these three measures are useful in assessing liquidity and the ability of a company to pay its current liabilities.

Three Measures Useful in Assessing Liquidity and the Ability of a Company