Examlex
________ is used to determine if measurements are consistent.
Current Ratio
A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.
Acid-test Ratio
A financial metric that measures a company's ability to pay off its current liabilities with its most liquid assets without relying on the sale of inventory.
Debt-to-Equity Ratio
A ratio used to measure the balance between the amount of debt and equity financing a company's assets.
Times Interest Earned
A financial ratio that measures a company's ability to meet its debt obligations based on its current income.
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