Which of the Following Financial Ratios Has the Highest Weight

question 52

Multiple Choice

Which of the following financial ratios has the highest weight in Altman's Z-score estimation?

• A) Working capital/total assets
• B) Retained earnings/total assets
• C) EBIT/total assets
• D) Sales/total assets

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Definitions:

Suburbs of Tacoma

Areas surrounding Tacoma, Washington, typically residential, offering amenities and a lifestyle distinct from the urban center.

Summit of the Volcano

The highest point or peak on a volcano, which is often the location of the central vent or crater.

Mudflow Deposits

Sedimentary accumulations resulting from the flow of mud, often triggered by volcanic activity or heavy rainfall, that can cover large areas and solidify over time.

Landslide Blocks

Large pieces of earth, rock, or debris that move downhill rapidly due to gravity, often caused by saturation from rainfall or seismic activity.