The correct answer is A. current ratio.
A current ratio is a liquidity ratio that measures a company’s ability to pay its short-term obligations. It is calculated by dividing a company’s current assets by its current liabilities. A current ratio of 2:1 or greater is generally considered to be healthy.
A liquidity ratio is a financial ratio that measures a company’s ability to meet its short-term obligations. Liquidity ratios are important because they can help investors and creditors assess a company’s financial health and its ability to repay its debts.
A debt equity ratio is a financial ratio that measures the amount of debt a company has relative to its equity. A debt equity ratio of 1:1 or greater is generally considered to be high.
A proprietary ratio is a financial ratio that measures the amount of equity a company has relative to its assets. A proprietary ratio of 10% or greater is generally considered to be healthy.