Why is Liquidity Important for a Company?

[Suba1]

In the business world, the term liquidity is used to describe or measure a company's financial condition. Cash and bank or cash equivalents are the most liquid types of assets in a company, while other assets such as investment instruments, receivables, fixed assets, inventory, etc. are classified as non-current liquidity. Some methods that are often used by business people and investors to measure the liquidity of a business are cash ratio, current ratio and quick ratio. So in your opinion, why is liquidity important for a company?