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**Liquidity Ratios:** Moving on to liquidity ratios, these are the financial metrics that show us how easily a company can meet its short-term obligations. In other words, can Fisker pay its bills? There are a couple of key liquidity ratios to consider. The current ratio, which is calculated by dividing current assets by current liabilities, tells us if the company has enough assets to cover its immediate debts. A ratio above 1 generally indicates good liquidity. Another one is the quick ratio, which is similar to the current ratio but excludes inventory from current assets. This gives us a more conservative view of liquidity, as it only considers assets that can be quickly converted to cash. Why do these ratios matter? Well, if a company has strong liquidity, it's less likely to face financial distress or need to scramble for funding. So, looking at Fisker's liquidity ratios helps us understand their short-term financial health and ability to operate smoothly.
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