Answer to Question #5648 in Finance for LaMarcus Streeter

Question #5648
Each of the following is a liquidity ratio except the acid-test ratio. current ratio. inventory turnover. debt to total assets ratio.
Expert's answer
Each of the following is a liquidity ratio except the inventory turnover. All
liquidity ratios focus on a firm's ability to pay its short-term debt
obligations that means focus on the firm's current assets and current
liabilities on the balance sheet. Otherwise inventory turnover is the activity /
efficiency ratio and it measures how many times per period a business sells and
replaces its inventory again.

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