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Welcome to finance and Excel video number 16. Hey, if you want to download this workbook or the PDF, click on the link directly below the video and you can download the workbook and PDF for chapter 3. And weve got to talk about liquidity ratios. Liquidity, whats liquidity? How quickly something can be converted to cash. Can they cover their short term bills? We talked about working capital. Working capital is current assets minus current liabilities. But heres a ratio. We talked about it a little bit in the last video, but more in the context of learning ratios. Here we want to talk about liquidity ratios, in particular, the current asset, commonly used in debt contracts, where you see the current asset has to be a certain amount or perhaps they have to pay some of their debt early. CA, current assets divided by current liabilities-- for every $1 of current liability, how many dollars of current assets are there for us to potentially use that to pay? Now above-- when we do this div