Liquidity Ratios (KS) The term liquidity refers to the speed and ease with which an asset can be converted into the most liquid of all assets, cash (Ross 23) . Liquidity ratios are used to determine a company's ability to repay short- and long-term debt obligations. There are some common liquidity ratios which include the current ratio and the quick ratio. • Current Ratio The current ratio is used to measure a company's short-term liquidity. The current ratio is calculated by dividing current assets by current liabilities. This is used as an indicator of a company's ability to repay its liabilities with its assets. The current ratio of Apple Inc. in 2010 was 2.01, the current ratio in 2011 was 1.61, the current ratio in 2012 was 1.50, the current ratio The current ratios of Google's parent company, Alphabet Inc., they are quite impressive and indicate the likelihood of the company paying off its' short-term debts is quite likely. The company's current ratio in 2010 was 4.16, in 2011 the current ratio was 5.92, the current ratio in 2012 was 4.58, the current ratio was 4.58 in 2013 and in the most recently reported year, the 2014, Google's parent company's current ratio was 4.80 (10-K. Google Inc. 2014.) Hewlett-Packard Co.'s current ratios fell below the ratios of both Apple and Google. In 2010 the current ratio for Hewlett-Packard Co. was 1.10, in 2011 the current ratio for the company was 1.01, in 2012 the current ratio was 1.09, in 2013 the current ratio was 1.11 and in he most recent year reported by Hewlett -Packard Co., 2014, their current ratio was 1.15. Looking at HP's current ratios, one can assume that they are less likely to repay their short-term debts than both Apple and Google ("Annual Financials for Hewlett-Packard