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The main ratio used by many financial analysts to examine a company's short-term liquidity risk is the current ratio. However, there are a number of

The main ratio used by many financial analysts to examine a company's short-term liquidity risk is the current ratio. However, there are a number of problems that arise when this ratio is used to examine short-term liquidity risk that may make the current ratio less useful than initially thought. Discuss the interpretative problems of using the current ratio.

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