Question
Which among the following does not belong to Liquidity
Ratios?Solution
The liquidity ratios are financial metrics that measure a company's ability to meet its short-term obligations with its current assets. Among the options provided, the ratio that does not belong to liquidity ratios is: Capital Gearing Ratio Capital Gearing Ratio is not a liquidity ratio. It measures the proportion of debt financing to equity financing in a company. It indicates the degree of financial leverage or gearing in a company's capital structure and is used to assess the financial risk associated with a firm's use of debt.
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