Which of these is NOT considered a coverage ratio?
A)Cash coverage ratio
B)Current ratio
C)Fixed-charge coverage ratio
D)Times interest earned

Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio, not a coverage ratio. Coverage ratios measure a company's ability to meet its debt obligations, while liquidity ratios measure a company's ability to pay its short-term debts. The other options listed are all coverage ratios.

Which of These Is NOT Considered a Coverage Ratio