Answered

Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

Which one of the following would not be considered a liquidity ratio?

1. Current ratio
2. Inventory turnover
3. Average collection period
4. Return on assets

Sagot :

GinnyAnswer

Final answer:

Liquidity ratios assess an organization's ability to meet short-term obligations. Return on assets is not a liquidity ratio.


Explanation:

Liquidity ratios measure an organization's ability to cover its day-to-day expenses using liquid resources. Out of the given options, return on assets would not be considered a liquidity ratio because it focuses on profitability rather than liquidity.


Learn more about financial ratios here:

https://brainly.com/question/30785230


We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.