Liquidity — a measurement of an organization's ability to meet its debt obligations,
particularly short-term debt. Cash, accounts receivable, and short-term
securities are considered liquid assets since they can be quickly made
available to pay debt. Ratios commonly used to measure liquidity include the
current ratio, acid-test ratio, number of days' sales in accounts
receivable, accounts receivable turnover, total assets turnover, and inventory
turnover.