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Which of the following ratios are particularly interesting to short-term creditors?

Arslan Khalid

25 Jul, 2023

A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios

Details:

Liquidity ratios are an important class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital. The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations.

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