Short-term Liquidity Ratios | Financial Statement Analysis

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Wouldn't it be nice to know if a company is going to have trouble paying its bills in the next 12 months? There are several ratios we can use to assess a company's short-term liquidity:
(1) current ratio
(2) quick ratio
(3) cash ratio
(4) operating cash flow to current liabilities
(5) operating cash flow to total liabilities
The current ratio, quick ratio, and cash ratio assess whether a company will be able to generate sufficient resources within the next 12 months to pay any liabilities that come due within the next 12 months. The higher the ratio, the better positioned the company is to satisfy its liabilities.
The two ratios involving operating cash flow assess whether the company will be able to generate enough cash from its core business operations to satisfy its current liabilities (or all liabilities).
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