Most of the ratios given a high significance rating by commercial loan officers have a primary measure of liquidity or debt.

Question

Quizplus · Accepted Answer

Commercial loan officers typically give high significance to ratios that measure liquidity (ability to meet short-term obligations) and debt (ability to manage long-term obligations), such as the current ratio, quick ratio, debt-to-equity ratio, and debt service coverage ratio.

Most of the Ratios Given a High Significance Rating by Commercial