Which of the following ratios is least useful in evaluating a company's ability to pay its current obligations when they come due?
A)current ratio
B)quick ratio
C)cash ratio
D)return on assets ratio

Question

Quizplus · Accepted Answer

The return on assets ratio measures a company's profitability relative to its total assets, and does not directly relate to its ability to pay current obligations. The current ratio, quick ratio, and cash ratio all provide insight into a company's liquidity and ability to meet short-term obligations.

Which of the Following Ratios Is Least Useful in Evaluating