Which of these ratios is not directly relevant to the evaluation of a company's short-term liquidity position?
A)Operating profit ratio.
B)Current ratio.
C)Quick ratio.
D)Acid test ratio.

Question

Quizplus · Accepted Answer

The operating profit ratio measures the operating profit generated by a company compared to its revenue, and is not a direct measure of a company's short-term liquidity position. The current ratio, quick ratio, and acid test ratio are all ratios that evaluate a company's ability to meet short-term financial obligations.

Which of These Ratios Is Not Directly Relevant to the Evaluation