The liquidity level of a firm to pay claims of short-term creditors without relying on selling its inventories can be identified using the ROIC ratio.

Question

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The ROIC ratio (Return on Invested Capital) measures how efficiently a company is using its capital to generate profits. It does not directly relate to the liquidity level of a firm to pay claims of short-term creditors without selling inventories. Other ratios like current ratio, quick ratio, and cash ratio are more relevant in determining a firm's liquidity level.

The Liquidity Level of a Firm to Pay Claims of Short-Term