Calculate and analyze the current, quick, cash, and operating cash flow and trade payable ratios.

- Both investors and creditors are interested in a company's liquidity-that is, its ability to meet its short-term obligations.

- Failure to pay current liabilities can lead to suppliers refusing to sell needed inventory and employees leaving.

- As such, even companies with good business models can be forced into bankruptcy by their inability to pay current liabilities.

- Common ratios used to analyze a company's ability to meet its current obligations are:
- current ratio - quick ratio - cash ratio - operating cash flow ratio - net trade payable ratio