Liquidity compares the total amount of debt a company has to its total assets.

Name: Liquidity compares the total amount of debt a company has to its total assets.
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Liquidity compares a company's ability to meet short-term obligations. Total debt to total assets is a measure of solvency or leverage, not liquidity. Liquidity ratios include the current ratio, quick or acid test ratio, and cash ratio, which all compare a company's current assets to its current liabilities.

Liquidity Compares the Total Amount of Debt a Company Has