Lenders would be most concerned with:
A)Debt to equity ratio
B)EPS
C)Inventory turnover
D)price earnings ratio

Question

Quizplus · Accepted Answer

Lenders would be most concerned with the debt to equity ratio as it shows the proportion of a company's financing that comes from debt as compared to equity. This indicates the company’s financial stability and creditworthiness. A high debt to equity ratio could imply that a company has a high level of debt and may not be able to meet its financial obligations, which will increase the risk of default on loan repayment. Therefore, lenders generally prefer a low debt to equity ratio.

Lenders Would Be Most Concerned With