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The term "liquidity" specifically measures a company's ability to meet its short-term obligations using its current assets. In financial analysis, liquidity is crucial because it indicates whether a company can cover its immediate liabilities without having to sell long-term assets or secure external financing.

Current assets, such as cash, inventory, and accounts receivable, are essential in assessing liquidity since they are assets that can quickly be converted into cash or are already cash. A company with strong liquidity can comfortably manage its day-to-day operations and unexpected expenses, which is particularly important for maintaining operational stability and stakeholder confidence.

The other choices relate to different aspects of financial performance and metrics. Profitability pertains to a company's earnings over time, overall asset value relates to the accumulation of all assets held by the company, and long-term growth potential involves the future earnings growth improvement of a company. While these are important considerations in finance, they do not directly define liquidity, which is focused solely on short-term financial health and operational flexibility.