Question

You are considering an investment in Apple stock and wish to assess the firm's short-term debt-paying ability. All of the following ratios are used to assess liquidity except: Debt to equity ratio. Inventory turnover. Quick ratio. Accounts receivable turnover.

Answer 1

Debt to equity ratio

Step-by-step explanation:

Liquidity ratios are used to measure the ability of firm to pay its short term debts.

Debt to equity ratio is a solvency ratio that is used to determine a firm's ability to pay long term debt.

The quick ratio = (cash + short term marketable investment + Receivables) / current libaities

Account receivable turn over and receivable turnover is used to calculate cash conversion cycle.