Asked by
Tatyana Henry
on Oct 19, 2024Verified
Which of the following is NOT a liquidity ratio?
A) Inventory turnover ratio
B) Current ratio
C) Quick ratio
D) Cash ratio
Liquidity Ratio
A financial metric used to determine a company's ability to pay off its short-term liabilities with its most liquid assets.
Inventory Turnover
This is a ratio showing how many times a company's inventory is sold and replaced over a period, usually a year, indicating the efficiency of inventory management.
Current Ratio
A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.
- Engage in the calculation and analysis of financial ratios, including the examination of liquidity, leverage, and profitability dimensions.
Verified Answer
WH
Learning Objectives
- Engage in the calculation and analysis of financial ratios, including the examination of liquidity, leverage, and profitability dimensions.