What two ratios are commonly used to evaluate a company's working capital management?

The correct answer highlights the importance of specific ratios in assessing a company's efficiency in managing its working capital. The receivable turnover ratio specifically measures how effectively a company collects its receivables, which is a key component of working capital. A higher receivable turnover indicates that the company is efficient in collecting cash from credit customers, thereby enhancing its liquidity and cash flow.

The cash ratio, on the other hand, provides insight into a company's ability to meet its short-term obligations with its most liquid assets, enabling assessment of immediate liquidity without reliance on receivables or inventory sales. Together, these two ratios give a comprehensive view of how well a company manages its short-term assets and liabilities, which is pivotal in working capital management.

In contrast, while the current ratio and quick ratio also relate to working capital, they tend to focus more broadly on overall liquidity rather than specific management practices. Other options present ratios that either focus on profitability metrics or operational efficiency not directly tied to the management of working capital. Thus, the emphasis on the receivable turnover and cash ratio directly aligns with assessing the nuances of working capital management.