Which one of the following ratios is a measure of a firm's liquidity?
A) Cash coverage ratio
B) Profit margin
C) Debt-equity ratio
D) Quick ratio
E) NWC turnover

Name: Which one of the following ratios is a measure of a firm's liquidity? A) Cash coverage ratio B) Profit margin C) Debt-equity ratio D) Quick ratio E) NWC turnover
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Question

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The quick ratio, also known as the acid-test ratio, is a measure of a firm's liquidity, indicating its ability to meet short-term obligations with its most liquid assets.

Which One of the Following Ratios Is a Measure of a Firm's