The measurement of short-term financial health in a business is commonly done using which of the following?

The current ratio is a key metric used to assess the short-term financial health of a business. It is calculated by dividing a company's current assets by its current liabilities. This ratio provides insight into the ability of a business to cover its short-term obligations with its short-term assets. A current ratio greater than one indicates that a company has more current assets than current liabilities, which is generally a good sign of financial stability and liquidity.

In contrast, net profit margin focuses on profitability rather than liquidity, measuring how much of each dollar earned translates into profits. Return on assets evaluates how effectively a company is utilizing its assets to generate profit, which is also not directly indicative of short-term financial health. Debt-to-equity ratio compares a company's total liabilities to its shareholder equity, providing insight into long-term financial leverage and risk but not specifically addressing short-term obligations. Therefore, the current ratio is the most relevant measure for assessing a business's ability to meet short-term financial commitments.