Which of these ratios is not directly relevant to the evaluation of a company's short-term liquidity position?
A) current ratio
B) net profit ratio
C) quick ratio
D) acid test ratio

Question

Quizplus · Accepted Answer

The net profit ratio measures profit relative to sales and does not provide information about the company's ability to meet its short-term obligations. The current ratio, quick ratio, and acid test ratio are all measures of short-term liquidity.

Which of These Ratios Is Not Directly Relevant to the Evaluation