All of the following measure liquidity except:
A) current ratio.
B) inventory turnover.
C) acid-test ratio.
D) operating return on assets.

Question

Quizplus · Accepted Answer

Operating return on assets measures how efficiently a company is using its assets to generate profits, and is not an indicator of liquidity. A, B, and C are all measures of liquidity - current ratio measures a company’s ability to pay off short-term debts, inventory turnover measures how quickly a company is selling its inventory, and acid-test ratio measures a company’s ability to meet short-term obligations using only its most liquid assets.

All of the Following Measure Liquidity Except