1- Current ratio = current assets/current liabilities

2- Quick ratio= (cash and cash equivalent +net receivables)/ current liabilities

3- Days cash on hand (DCOH) = (unrestricted cash and cash equivalent/ cash operation expenses/no. Of days in period (365)

4- Days receivables= Net receivables/net credit revenues/ no. Of days in period (365)

Liquidity ratio is the ratio, which sets relationship between current assets and current liabilities. It denotes excess of current assets over current liabilities. It also shows short-term solvency of the firm.