... refers to the speed with which an asset can be converted intocash without large discounts to its value. Some assets, such as accounts receivable,can easily be converted to cash with only small ... Statement Analysis Tools 103Liquidity RatiosAll other things being equal, a firm with more liquid assets will be more able tomeet its maturing obligations (i.e., its bills) than a firm with fewer ... Financial Statement Analysis Tools 103CHAPTER 4: Financial Statement Analysis Tools104EXHIBIT 4-1RATIO WORKSHEET FOR EPIWe can calculate the current ratio for 2004 in C3 with the formula:...