All other things equal,in which of the following cases would an analyst rank the company most favourably?
A)The company has the highest debt-to-assets ratio in the industry as well as the highest profit margin and asset turnover ratio.
B)The company has the highest debt-to-assets ratio in the industry as well as the highest profit margin while its asset turnover ratio is the lowest.
C)The company has the lowest debt-to-assets ratio in the industry as well as the lowest asset turnover ratio while its profit margin is the highest.
D)The company has the lowest debt-to-assets ratio in the industry as well as the highest profit margin and asset turnover ratio.

Question

Quizplus · Accepted Answer

A lower debt-to-assets ratio is generally seen as a positive financial indicator, indicating more financial stability and less risk. Additionally, high profit margins and high asset turnover ratios are also positive indicators of a company's financial health. Therefore, in this case, the company with the lowest debt-to-assets ratio and the highest profit margin and asset turnover ratio would be ranked most favorably by an analyst.

All Other Things Equal,in Which of the Following Cases Would