Asked by
Ahnaf Rahman Siam 1711501630
on Nov 14, 2024Verified
Which one of the following ratios would not likely be used by a short-term creditor in evaluating whether to sell on credit to a company?
A) current ratio
B) dividend yield
C) asset turnover
D) receivables turnover
Current Ratio
A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.
Dividend Yield
A metric indicating the annual dividends a firm distributes in relation to its share price.
Asset Turnover
A financial ratio indicating how efficiently a company uses its assets to generate revenue.
- Distinguish among the financial metrics of liquidity, solvency, profitability, and leverage ratios.
Verified Answer
AW
Learning Objectives
- Distinguish among the financial metrics of liquidity, solvency, profitability, and leverage ratios.