Final answer:
The debt to equity ratio is not a liquidity ratio; it is a leverage ratio that measures long-term solvency instead of short-term liquidity. Option B is correct.
Step-by-step explanation:
The ratio not considered to be a liquidity ratio is the debt to equity ratio. Liquidity ratios measure a company's ability to meet its short-term obligations with its most liquid assets. The current ratio, receivable turnover ratio, and inventory turnover ratio are all liquidity ratios as they relate to the company's current assets or its short-term ability to convert assets to cash.
In contrast, the debt to equity ratio is a leverage ratio that compares a company's total liabilities to its shareholder equity, and thus, it provides insight into the firm's long-term solvency rather than its liquidity.
The ratio that is not considered to be a liquidity ratio is the debt to equity ratio.
A liquidity ratio measures a company's ability to meet its short-term obligations. The most common liquidity ratios are the current ratio, receivable turnover ratio, and inventory turnover ratio. These ratios focus on a company's current assets and current liabilities.
The debt to equity ratio is a financial leverage ratio that measures the proportion of a company's debt to its equity. It provides insight into a company's financial structure and risk, but it does not directly measure liquidity.