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(a) A Higher Receivable Turnover is not desirable,
(b) Interest Coverage Ratio depends upon Tax Rate,
(c)Increase in Net Profit Ratio means increase in Sales,
(d) Lower Debt-Equity Ratio means lower Financial Risk.
(e) Non of the above
Answer option (d) >>>>>>>>>>>>> Lower Debt-Equity Ratio means lower Financial Risk.
Answer Option (d) is correct <<<<<<<<<
d
- high receivables turnover ratio implies either that the company operates on a cash basis or that its extension of credit and collection of accounts receivable are efficient
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- A high net profit margin means a company is able to control its costs that buy goods and services at prices significantly higher than it costs to produce or provide them
- Generally, companies with higher ratios are thought to be more risky because they have more liabilities and less equity
(d) >>>>Lower Debt-Equity Ratio means lower Financial Risk.
{{{{{{.d) {{{{ Lower Debt-Equity Ratio means lower Financial Risk )
answer (a)
a) A Higher Receivable Turnover is not desirable,
the answer is (d). the lower the dept-equity ratio is the lower the financial risk will be.
(d) Financial Risk is related with debt amount in Business thats why answer will be D
(c)Increase in Net Profit Ratio means increase in Sales,
No Doubt Its D..Thank you Sir for the invitation.
Option d ...............................
