Which of the following ratios is used to evaluate a company's short-term liquidity?

The current ratio is a financial metric that assesses a company's short-term liquidity by comparing its current assets to its current liabilities. This ratio serves as an indicator of how well a company can meet its short-term obligations with its most liquid assets, which include cash, accounts receivable, and inventory. A higher current ratio suggests that the company has sufficient assets to cover its liabilities, thus indicating good liquidity.

In contrast, the debt to equity ratio focuses on long-term financial leverage and is concerned with the relationship between total liabilities and shareholders' equity, rather than short-term liquidity. The return on assets ratio measures how effectively a company utilizes its assets to generate earnings, which does not provide insights into liquidity. Additionally, the earnings to earnings ratio is not a standard financial measure and does not relate to liquidity evaluation. Therefore, the current ratio is the most appropriate choice for assessing a company's short-term liquidity.