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* **Liquidity Ratios:** These ratios measure the company's ability to meet its short-term obligations. Key ratios include the current ratio (current assets / current liabilities), which measures the company's ability to pay its current liabilities with its current assets, and the quick ratio (current assets - inventory / current liabilities), which is a more conservative measure that excludes inventory. Higher liquidity ratios indicate a greater ability to meet short-term obligations.
