Suppose that you were trying to determine how much income was available for future monetary needs as well as for investments. You would most likely use which of the following ratios?

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The savings ratio is a measure of the percentage of disposable income that a person or household saves. This ratio indicates how much money a person or entity has left over after covering their current expenses and can, therefore, be used for future monetary needs or investments. The current ratio is a measure of a company's liquidity and ability to meet its short-term obligations, while the debt ratio is a measure of a company's leverage and ability to repay its long-term debt. Total asset turnover is a measure of a company's efficiency in using its assets to generate revenue. Therefore, none of the other ratios would be directly relevant for determining available income for future monetary needs and investments.

Suppose That You Were Trying to Determine How Much Income