Answer: Defensive interval ratio

**Explanation:** - **Option A (Cash conversion cycle):** Incorrect. This metric represents the time elapsed from when a company invests in working capital until it collects cash. It does not assess the ability of liquid assets to cover daily cash expenditures. - **Option B (Defensive interval ratio):** Correct. This ratio specifically measures how long a company can continue to meet its daily cash expenditures using its existing liquid assets, without relying on additional cash inflows. - **Option C (Fixed charge coverage ratio):** Incorrect. This ratio evaluates the extent to which a company's earnings can cover its fixed obligations, such as interest and lease payments. It does not address the coverage of daily cash expenditures by liquid assets. **Learning Outcome:** Calculate and interpret activity, liquidity, solvency, and profitability ratios.

Author: LeetQuiz Editorial Team