Which of the following ratios is used to analyze a company's liquidity?
A)Return on assets ratio
B)Inventory turnover ratio
C)Earnings per share
D)Asset turnover ratio

Question

Quizplus · Accepted Answer

The inventory turnover ratio is a liquidity ratio that measures how efficiently a company is able to sell its inventory and convert it into cash. This ratio is important in analyzing a company's ability to meet its short-term obligations.

Which of the Following Ratios Is Used to Analyze a Company's