Which of the following describes a liquidity ratio?

A liquidity ratio is specifically designed to assess an organization's ability to meet its short-term financial obligations, which reflects its financial viability. This ratio indicates how quickly a company can convert its assets into cash in order to satisfy its immediate liabilities. By focusing on the relationship between liquid assets and current liabilities, liquidity ratios provide insights into the financial health and stability of an organization.

In contrast, the other choices pertain to different financial metrics: profitability measures evaluate how efficiently a company generates profit; operational efficiency assesses how effectively a company uses its resources; investment potential looks at the attractiveness of a company for investors. Each of these measures serves a distinct purpose, while the liquidity ratio specifically addresses the critical aspect of managing short-term financial commitments.