Which of the following ratios does not measure liquidity?
A) Current ratio
B) Quick ratio
C) Working capital to total assets
D) Debt to equity

Question

Quizplus · Accepted Answer

Debt to equity measures the company's leverage and financial risk, not liquidity. Current ratio, quick ratio, and working capital to total assets are all measures of a company's ability to meet short-term obligations and therefore reflect liquidity.

Which of the Following Ratios Does Not Measure Liquidity