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(a) Current ratio (b) Debt-equity ratio(c) Return on investment (ROI) (d) Net profit margin (e) Inventory turnover.
The element (a) The current ratio is the ratio of the creditors of contribution to the owner
Right answer option <<<<<<<<<<<<<<<<<B
......................(b) Debt-equity ratio
If for creditors we intend suppliers and subcontractors I would go for (A), if for creditors we intend lenders I would go for (B).
The reason for (A) is that improved credit (payment terms) by suppliers positively influences the working capital by reducing the amount of current liabilities to be charged to a specific FY.
The reason for (B) is self explanatory/
(b)
Debt-equity ratio indicates what percentage of the organization’s assets creditors furnish. (a) Current ratio is the ratio of current assets to current liabilities. (c) Return on investment (ROI) is the ratio of net income to total assets. (d) Net profit margin is the ratio of net income to net sales. (e) Inventory turnover is the ratio of cost of goods sold to inventory.
(b) Debt-equity ratio
That is the bottom line
Agree with the professionals.............................
Choice B debt to equity ratio is the answer
Answer is B) Debt- Equity Ratio
(B) Thank You.
