Which of the following is NOT an efficiency ratio?

The current ratio is a measure of a company's ability to pay off its short-term liabilities with its short-term assets, and it is categorized as a liquidity ratio rather than an efficiency ratio. Efficiency ratios, on the other hand, assess how effectively a company utilizes its assets and manages its operations to generate revenue.

Days receivable, asset turnover, and net profit margin all fall under the category of efficiency ratios. Days receivable evaluates how quickly a company collects cash from credit sales, asset turnover measures how efficiently a company uses its assets to generate sales, and net profit margin assesses how effectively a company converts revenue into profit, reflecting operational efficiency.

In summary, while the current ratio provides insight into liquidity, it does not measure efficiency of asset utilization or operational performance like the other ratios listed. This distinction clarifies why the current ratio is not considered an efficiency ratio.