Answer to Question #5648 in Finance for LaMarcus Streeter
Each of the following is a liquidity ratio except the
debt to total assets ratio.
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.