Which financial ratio would be of most interest when assessing short-term liquidity?

The current ratio is a key financial metric used to evaluate a company's short-term liquidity. It measures a company's ability to cover its short-term liabilities with its short-term assets. This ratio is calculated by dividing current assets by current liabilities. A higher current ratio indicates a greater likelihood that a company can meet its short-term obligations, which is crucial for understanding its financial health in the near term.

In contrast, other financial ratios focus on different aspects of a company's financial status. The debt-to-equity ratio assesses the proportion of debt versus equity financing but doesn’t specifically indicate short-term liquidity. Return on equity measures profitability relative to shareholders' equity which is not a direct measure of liquidity. The net profit margin illustrates how much profit a company makes for each dollar of revenue, but it doesn’t provide insight into the timely availability of cash to meet current liabilities.

Thus, the current ratio is the most relevant metric for evaluating a company's capacity to manage short-term financial responsibilities, making it the correct choice in assessing short-term liquidity.