Which ratio is NOT included in the sustainable growth formula?
A) profit for the year to revenue
B) current liabilities to current assets
C) reinvested income to profit before dividends
D) total liabilities to equity

Question

Quizplus · Accepted Answer

The sustainable growth formula typically includes ratios that reflect a company's ability to grow without needing to increase financial leverage. The ratio of current liabilities to current assets (B) is more related to short-term liquidity than sustainable growth.

Which Ratio Is NOT Included in the Sustainable Growth Formula