33.4k views
4 votes
Which of the following measures is not used to determine liquidity?

1) Current ratio
2) Quick ratio
3) Debt-to-equity ratio
4) Inventory turnover ratio

User BiTOk
by
8.3k points

1 Answer

4 votes

Final answer:

The Debt-to-equity ratio is not used to determine liquidity. Liquidity ratios assess a company's ability to pay off short-term debts and obligations.

Step-by-step explanation:

The measure that is not used to determine liquidity is the Debt-to-equity ratio. Liquidity ratios are used to measure a company's ability to pay off short-term debts and obligations. The current ratio and quick ratio are both liquidity ratios that assess a company's ability to meet short-term liabilities using current assets, while the inventory turnover ratio measures how efficiently a company manages its inventory.

User Ido Weinstein
by
8.5k points