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Meaning of short term liquidity ratios

 

 

 

Short term liquidity ratios

 

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Business glossary

 

Meaning of term short term liquidity ratios :

 

Short term liquidity ratios include the current ratio and the acid test ratio and measure how easily the company can meet its short-term financial commitments from the current assets they have. A reasonable level of liquidity is vital for firms to ensure that they can meet their day to day financial commitments.

 

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Short term liquidity ratios

 

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