Which group of ratios might be most interesting to potential creditors of a firm?
A) asset utilization ratios
B) profitability ratios
C) leverage ratios
D) market value ratios

Question

Quizplus · Accepted Answer

Potential creditors are most interested in leverage ratios which indicate the amount of debt a company has taken on compared to its assets and equity. This helps creditors assess the risk of lending to the company and its ability to make loan payments.

Which Group of Ratios Might Be Most Interesting to Potential