# Liquidity Measurement Ratios: Introduction

**If it is decided to study the liquidity position of the concern, then liquidity ratios are calculated. These ratios are used to measure the firm’s ability to meet short term obligations.**

From these ratios, much insight can be obtained into the present cash solvency of the firm and the firm’s ability to remain solvent in the event of adversity.

**NEXT – Liquidity Measurement Ratios: Current Ratio**

**Table of Contents**

**1) Liquidity Measurement Ratios: Introduction
2) Liquidity Measurement Ratios: Current Ratio
3) Liquidity Measurement Ratios: Quick Ratio
4) Liquidity Measurement Ratios: Cash Ratio**