Which of these is NOT considered a coverage ratio?
A) cash coverage ratio
B) current ratio
C) fixed-charge coverage ratio
D) times interest earned

Question

Quizplus · Accepted Answer

The current ratio is not considered a coverage ratio. Coverage ratios typically measure a company's ability to service its debt and obligations, whereas the current ratio assesses a company's ability to pay off its short-term liabilities with its short-term assets.

Which of These Is NOT Considered a Coverage Ratio