- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 22. Understanding Balance Sheets
- Subject 5. Uses and Analysis of the Balance Sheet
CFA Practice Question
Which ratio is used to measure a company's internal liquidity?
A. Current ratio
B. Gross profit margin
C. Interest coverage
Explanation: Gross profit margin measures operating profitability. Interest coverage measures a company's financial risk.
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