The current ratio is one indicator of the liquidity of a company.

Name: The current ratio is one indicator of the liquidity of a company.
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The current ratio is a liquidity ratio that measures a company's ability to pay off its short-term liabilities with its current assets. Therefore, a higher current ratio indicates better liquidity, while a lower current ratio may indicate difficulty meeting short-term obligations.

The Current Ratio Is One Indicator of the Liquidity of a Company