If an Analyst's Goal Is to Determine How Effectively a Firm

question 5

Multiple Choice

If an analyst's goal is to determine how effectively a firm is managing its assets, which of the following sets of ratios would he or she examine?

• A)Profit margin, current ratio, and fixed charge coverage ratio
• B)Quick ratio, debt ratio, and times interest earned
• C)Inventory turnover ratio, days sales outstanding, and fixed asset turnover ratio
• D)Total assets turnover ratio, price earnings ratio, and return on total assets
• E)Time interest earned, profit margin, and fixed asset turnover ratio

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