Here, the company could withstand a liquidity shortfall if providers of debt financing see the core operations are intact and still capable of generating consistent cash flows at high margins. The Current Ratio is a measure of a company’s near-term liquidity position, or more specifically, the short-term obligations coming due within one year. Public companies don't report their current ratio, though all the information needed to calculate the ratio is contained in the company's financial statements. Even from the point of view of creditors, a high current ratio is not necessarily a safeguard against non-payment of debts. By contrast, in the case of Company Y, 75% of the current assets are made up of these two liquid resources. While determining a company’s…