Which of the following ratios is not an indicator of a company's short-term financial strength?
A) Price/earnings ratio.
B) Receivable turnover ratio.
C)Working capital.
D)Quick ratio.

Question

Quizplus · Accepted Answer

The price/earnings ratio is a measure of a company's valuation and does not provide information on its short-term financial strength. The other ratios listed (receivable turnover ratio, working capital, quick ratio) are all indicators of a company's ability to meet short-term financial obligations.

Which of the Following Ratios Is Not an Indicator of a Company's