Which one of the following would NOT be considered a liquidity ratio?
A) current ratio
B) inventory turnover ratio
C) receivables turnover ratio
D) return on assets ratio

Question

Quizplus · Accepted Answer

Liquidity ratios measure a company's ability to meet its short-term obligations. The current ratio, inventory turnover ratio, and receivables turnover ratio all relate to a company's current assets or liabilities, affecting its liquidity. The return on assets ratio, however, measures profitability rather than liquidity, making it the correct choice.

Which One of the Following Would NOT Be Considered a Liquidity