Which of the following is often used to measure a company's overall liquidity even though it is not really a financial ratio?
A) earnings per share
B) return on equity
C) net profit margin
D) net working capital

Question

Quizplus · Accepted Answer

Net working capital is the difference between a company's current assets and current liabilities, and it indicates the company's ability to meet its short-term financial obligations. While it is not technically a financial ratio, it is commonly used to assess a company's overall liquidity. Earnings per share, return on equity, and net profit margin are all actual financial ratios used to analyze a company's performance.

Which of the Following Is Often Used to Measure a Company's