Which user would be interested in examining the results of the profitability and gearing ratios?

Question

Quizplus · Accepted Answer

All three groups - long-term lenders, shareholders, and potential investors - would be interested in examining the results of the profitability and gearing ratios. Long-term lenders would use these ratios to determine whether a company can generate enough profit to pay off its debts. Shareholders would use these ratios to understand the company's financial health and its ability to generate returns on their investment. Potential investors would use these ratios to assess the company's potential for growth and profitability. Therefore, the best answer is D - all of the above.

Which User Would Be Interested in Examining the Results of the Profitability