Current ratio

As a measure of liquidity, the indicator assesses whether the government has the means available
to cover its existing obligations in the short run. A ratio of 1.0 means that current assets are equal to
current liabilities and are sufficient to cover obligations in the near term. The higher the current ratio,
the more capable the government is to pay its obligations. Generally, a government’s current ratio
should be close to 2.0

https://www.civicfed.org/civic-federation/blog/current-ratio-large-cities

quick ratio

Typically the quick ratio is more meaningful than the current ratio because inventory cannot
always be relied upon to convert to cash. A ratio of 1:1 is recommended. Low values for the
current or quick ratios (values less than 1) indicate that a firm may have difficulty meeting
current obligations. Low values, however, do not indicate a critical problem. If an organization
has good long-term prospects, it may be able to borrow against those prospects to meet current
obligations.

https://courses.lumenlearning.com/boundless-business/chapter/ratio-analysis-and-statement-
evaluation/

Debt ratio

From a pure risk perspective, lower ratios (0.4 or lower) are considered better debt
ratios. Since the interest on a debt must be paid regardless of business profitability, too
much debt may compromise the entire operation if cash flow dries up. Companies
unable to service their own debt may be forced to sell off assets or declare bankruptcy.

A higher debt ratio (0.6 or higher) makes it more difficult to borrow money. Lenders
often have debt ratio limits and do not extend further credit to firms that are over-
leveraged. Of course, there are other factors as well, such as credit worthiness,
payment history and professional relationships.

https://www.investopedia.com/ask/answers/021215/what-good-debt-ratio-and-what-bad-debt-
ratio.asp

debt to equity