soddy1979

In all Liquidity and Solvency ratios, both numerator and denomenator are Balance Sheet items, so there is no need for taking average values.

However, you already know that Balance Sheet shows 'as of date' values. It is a snapshot of figures at a particular point in time. Now, as an analyst, sometimes you may want to take 'average' values instead of 'ending' values, specially when there has been a big change in values between two periods and you think those changes will not sustain.