Liquidity ratios measure how quickly assets can be turned into cash in order to pay the company's short-term obligations. The following metrics can also be considered to measure the liquidity of a firm. •
Current ratio measures whether a firm has enough resources to meet its short-term obligations. It is the ratio of a firm's current assets to its current liabilities. •
Quick ratio (also known as an
acid test) measures the ability of a company to use near-cash ("quick") assets to eliminate current liabilities immediately. •
Reserve requirement, a bank regulation that sets the minimum reserves each bank must hold. •
Working capital, a financial metric that represents operating liquidity available. • Crisis liquidity ratio. A number of Bulgarian academic and accounting publications discuss the "crisis liquidity ratio" (CLR), defined as: : :and recommend its use under stressed conditions, as receivables may be less reliably realizable during crises. Several authors present CLR as a conservative variant of short-term liquidity assessment for stress scenarios, excluding receivables due to heightened collectability risk. ==See also==