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Which one of the following ratios is a measure of a firm's liquidity?
1. quick ratio
2. debt-equity ratio
3. nwc turnover
4. profit margin
5. cash coverage ratio

Sagot :

Chisomfrancis69idn

Answer:

1. quick ratio

Explanation:

Common liquidity ratios include the quick ratio, current ratio, and days sales outstanding. Liquidity ratios determine a company's ability to cover short-term obligations and cash flows, while solvency ratios are concerned with a longer-term ability to pay ongoing debts.

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