The correct answer is: B. Long-term solvency ratio.
A capital gearing ratio is a measure of a company’s financial leverage, or how much debt it uses to finance its assets. It is calculated by dividing a company’s total debt by its total assets. A higher capital gearing ratio indicates that a company is using more debt to finance its assets, which can be risky if the company is unable to repay its debts.
A market test ratio is a measure of a company’s stock price relative to its earnings per share. It is calculated by dividing a company’s stock price by its earnings per share. A higher market test ratio indicates that investors are willing to pay more for a company’s stock, which can be a sign that the company is doing well.
A liquid ratio is a measure of a company’s ability to pay its short-term debts. It is calculated by dividing a company’s current assets by its current liabilities. A higher liquid ratio indicates that a company is more likely to be able to pay its short-term debts.
A turnover ratio is a measure of how efficiently a company uses its assets to generate sales. It is calculated by dividing a company’s net sales by its average total assets. A higher turnover ratio indicates that a company is using its assets more efficiently to generate sales.