Analysts use measures of long-term liquidity risk to evaluate a firm's ability to meet interest and principal payments on long-term debt and similar obligations as they come due.If a firm cannot make the payments on time, it becomes insolvent and may have to reorganize or liquidate.

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This statement is true as analysts do use measures of long-term liquidity risk to assess a company's ability to make payments on long-term debts and obligations, and failure to do so can lead to insolvency and the need for restructuring or liquidation.

Analysts Use Measures of Long-Term Liquidity Risk to Evaluate a Firm's