The analysis of a firm's liquidity includes all of the following except,
A)Current ratio.
B)Receivables turnover.
C)Inventory turnover.
D)Fixed Asset turnover.

Question

Quizplus · Accepted Answer

The analysis of a firm's liquidity typically involves analyzing its ability to meet short-term financial obligations. This includes assessing its current ratio (the ratio of current assets to current liabilities), receivables turnover (the speed at which the firm collects payments from customers), and inventory turnover (the speed at which the firm sells its inventory). Fixed asset turnover, on the other hand, measures how efficiently a firm is using its long-term assets to generate revenue. While this is an important measure of financial performance, it is not directly related to a firm's liquidity.

The Analysis of a Firm's Liquidity Includes All of the Following