According to Compounding Quality, liquidity ratios such as the quick ratio and cash ratio are critical indicators for assessing a company's ability to meet short-term obligations without selling inventory (source: Compounding Quality Twitter, May 18, 2025). These metrics provide valuable insights for crypto traders monitoring traditional market stability, as shifts in corporate liquidity can impact institutional crypto flows and overall market sentiment. Understanding liquidity ratios enables traders to anticipate potential risk-off scenarios and adjust their crypto portfolio allocations accordingly.