Which of the following is not a measure of long-term credit risk?
A) Quick ratio.
B) Debt ratio.
C) Interest coverage ratio.
D) Trend in net cash provided by operating activities.

Question

Quizplus · Accepted Answer

Quick ratio is a measure of a firm's liquidity, not its long-term credit risk. The other three measures provided are commonly used to assess a firm's ability to meet its long-term debt obligations.

Which of the Following Is Not a Measure of Long-Term