Which of the following is NOT a liquidity ratio?
A) Inventory turnover ratio
B) Current ratio
C) Quick ratio
D) Cash ratio

Question

Quizplus · Accepted Answer

Inventory turnover ratio is not a liquidity ratio, it is a measure of the utilization of inventory assets. Liquidity ratios measure a company's ability to meet its short-term obligations. The other options, current ratio, quick ratio, and cash ratio are all liquidity ratios.

Which of the Following Is NOT a Liquidity Ratio