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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