Examlex
Which of the following sentences handles its subject most positively?
Acid-test Ratio
A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.
Debt-to-equity Ratio
The debt-to-equity ratio is a financial leverage ratio that compares a company's total liabilities to its shareholder equity, indicating how much the company is financing its operations through debt versus wholly owned funds.
Receivable Turnover
Receivable turnover is a financial ratio that measures how efficiently a company collects its accounts receivable, calculated by dividing net credit sales by average accounts receivable.
Inventory Turnover
A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock levels.
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