Some important metrics include several key ones to analyze a balance sheet. Among the most important indicators for liquidity of a company is the Current Ratio, which represents the company's ability to be able to pay off short-term obligations from liquid short-term assets. That ratio is given by current assets divided by current liabilities. An above current ratio means the company has more in current assets than liabilities. The liquidity is good, but a very high ratio may indicate inefficiency about the utilization of assets. The Quick Ratio, also acid-test ratio, shows an improved evaluation of the liquidity of the company by eliminating inventory from current assets. This metric can be used to determine whether a firm has sufficient liquidity to meet its short-term obligations or not, since some of its inventory may not easily be sold.