Which of the following is often used to measure a firm'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 often used to measure a firm's overall liquidity, as it reflects the difference between a firm's current assets and current liabilities. However, it is not really a financial ratio as it does not compare two financial figures. A, B, and C are financial ratios that measure different aspects of a firm's profitability and efficiency.

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