Liquidity issues can pose significant threats to financial institutions, often leading to drastic outcomes if not identified and managed promptly. Liquidity refers to the ability of an institution to meet its short-term obligations using available cash or assets that can be quickly converted to cash. Monitoring liquidity is crucial in ensuring the entity can continue its operations smoothly, especially during periods of financial stress. One key metric in assessing liquidity is the Current Ratio, which is the ratio of current assets to current liabilities. An initial sign that could suggest a possible liquidity issue is a noticeable decline in this ratio over a given period, indicating that the institution may be struggling to cover its short-term liabilities with its current assets.