Which of the following is a liquidity ratio?
A)Inventory turnover.
B)Price earnings (P/E).
C)Net profit margin.
D)Times interest earned.

Question

Quizplus · Accepted Answer

Inventory turnover is a liquidity ratio that measures the number of times a company's inventory is sold and replaced over a given period of time. It indicates how easily a company can convert its inventory into cash to meet its short-term obligations.

Which of the Following Is a Liquidity Ratio