Which of the following is a liquidity

Solution

The liquidity ratio is a financial ratio that measures the ability of a company to meet its short-term obligations. Based on the given options, the liquidity ratio is Net Working Capital The equity ratio is a solvency ratio that measures the proportion of equity in a company's capital structure. The proprietary ratio is also a solvency ratio that indicates the proportion of total assets financed by shareholders' funds. The capital gearing ratio is a leverage ratio that measures the proportion of debt and equity in a company's capital structure.