Which of the following is a liquidity ratio?

The current ratio is recognized as a liquidity ratio because it measures a company's ability to cover its short-term obligations with its short-term assets. This ratio is calculated by dividing current assets by current liabilities. A higher current ratio indicates a greater ability to meet short-term financial commitments, making it a crucial indicator of financial health.

In contrast, the debt-to-equity ratio focuses on the leverage of a company, measuring the proportion of debt relative to shareholders' equity. Times interest earned assesses a company's ability to pay interest on its debt, while the debt service coverage ratio indicates the cash available to meet debt obligations. None of these options serve as direct measures of liquidity like the current ratio does.