Which type of financial ratio indicates whether or not the organization is capable of paying off its short-term debts without having to sell any of its inventories?

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asked Jul 27, 2019 7.9k views

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Karthik Dheeraj · Answer 1 · 2019-08-03T02:45:19+0000

The answer is the liquidity ratio.

This ratio shows the rate between assets and liabilities. There are two examples of liquidity ratio: current ratio and quick ratio.

Which type of financial ratio indicates whether or not the organization is capable of paying off its short-term debts without having to sell any of its inventories?

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