Question

    Which among the following below is also known as working

    capital ratio
    A Current ratio Correct Answer Incorrect Answer
    B Quick ratio Correct Answer Incorrect Answer
    C Liquid ratio Correct Answer Incorrect Answer
    D Debt-equity ratio Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The working capital ratio, also known as the current ratio, measures a company's ability to meet its short-term obligations or current liabilities using its current assets. It is a liquidity ratio that helps assess a company's short-term financial health and its ability to cover immediate financial obligations.

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