Which of the following ratios does not measure liquidity?
A) Net cash flow to current liabilities
B) Working capital to total assets
C) Current ratio
D) Quick ratio

Question

Quizplus · Accepted Answer

Net cash flow to current liabilities measures the ability to generate enough cash flow to cover current liabilities, but it does not directly measure liquidity. The other options, working capital to total assets, current ratio, and quick ratio, are commonly used liquidity ratios.

Which of the Following Ratios Does Not Measure Liquidity