Which one of the following would not be considered a liquidity ratio?
A) Current ratio
B) Inventory turnover
C) Average collection period
D) Return on assets

Question

Quizplus · Accepted Answer

Liquidity ratios are used to measure a company's ability to pay off its short-term debts, and current ratio, inventory turnover, and average collection period are all examples of liquidity ratios. Return on assets, on the other hand, is a profitability ratio, which measures a company's ability to generate profits from its assets.

Which One of the Following Would Not Be Considered a Liquidity