Which of the following is considered a liquidity analysis ratio?
A)Return on total assets ratio.
B)Quick ratio.
C)Dividend yield ratio.
D)Return on sales ratio.

Question

Quizplus · Accepted Answer

Liquidity ratios are measures of a company's ability to pay its short-term obligations, and the quick ratio is a commonly used liquidity ratio. A) Return on total assets ratio measures how effectively a company is using its assets to generate profits. C) Dividend yield ratio measures the annual dividend payments relative to the stock price. D) Return on sales ratio measures the profitability of each dollar of sales.

Which of the Following Is Considered a Liquidity Analysis Ratio