When reviewing a credit application, the credit manager should be most concerned with the applicant’s:

Question

A. Profit margin and return on assets. B. Price-earnings ratio and current ratio

C. Working capital and return on equity. D. Working capital and current ratio

Janardhan N Billava · Answer

Working Capital and Current Ratios are major factors in credit management...

هيثم ناجى · Answer

the last option

D working acpital and current ratio

DAVID WILLIAM · Answer

Basically all ratios are important. But, in my view the vital ratios are Working Capital & Current Ratio.

Majid Munir · Answer

Working Capital and Current ratios

SAI ANIMESH KUMAR N · Answer

Hi Ahmed,

I would like to say E) All the above and many more other points :)

But if you ask me what's the last point out of the four choices, I would look at as a lender, then it would be price to earnings ratio.