Liquidity Ratios show the capacity of the company to repay its current liabilities by realising the current assets. It is the basic ratio of the accounting ratios. Table of Contents Meaning of Liquidity Ratios: Why do we need to Calculate Liquidity Ratios? The formula of Liquidity Ratios: 1. Current Ratio: 2. Quick or liquid Ratio … Continue reading What are Liquidity Ratios – Formulas and Examples