Liquidity Ratio
/ˈlɪkwɪdɪti ˈreɪʃɪoʊ/
Definitions
- (n.) A financial metric indicating a company's ability to cover its short-term obligations with liquid assets.
The court examined the liquidity ratio to assess the company's solvency in bankruptcy proceedings.
Forms
- liquidity ratio
- liquidity ratios
Related terms
See also
Commentary
While primarily a financial term, liquidity ratio analysis is often referenced in legal contexts involving insolvency, creditor disputes, and regulatory compliance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.