Which of the following ratios are of more concern for the shareholders?

Question

Quizplus · Accepted Answer

Shareholders are typically more concerned with the profitability of the company and its level of leverage, as these measures directly impact their returns and the company's ability to pay dividends. While liquidity is important for financial stability, it is not as vital of a concern for shareholders. Activity ratios, while useful for analyzing operational efficiency, do not have as direct of an impact on shareholder returns as profitability and leverage ratios.

Which of the Following Ratios Are of More Concern for the Shareholders