The correct answer is C. solvency.
Debt-to-equity ratio is a measure of a company’s financial leverage, calculated by dividing its total liabilities by its total equity. A high debt-to-equity ratio indicates that a company is using a lot of debt to finance its operations, which can be risky if the company is unable to repay its debts. A low debt-to-equity ratio indicates that a company is using less debt to finance its operations, which is generally considered to be a more conservative financial position.
Liquidity is a measure of a company’s ability to meet its short-term obligations. A company with high liquidity has a lot of cash and other liquid assets on hand, which allows it to pay its bills on time. A company with low liquidity may have difficulty meeting its short-term obligations, which can lead to financial problems.
Profitability is a measure of a company’s ability to generate profits. A profitable company is able to generate more revenue than it spends on expenses, which results in a positive net income. An unprofitable company is unable to generate enough revenue to cover its expenses, which results in a negative net income.
Turnover is a measure of a company’s efficiency in using its assets to generate sales. A high turnover ratio indicates that a company is using its assets efficiently to generate sales. A low turnover ratio indicates that a company is not using its assets efficiently to generate sales.