Which of the following financial ratios is not a component of the Z score model?
A)Working capital/total assets.
B)Sales/total assets.
C)Common stock/total assets.
D)Retained earnings/total assets.

Question

Quizplus · Accepted Answer

The Z score model includes five financial ratios: working capital/total assets, retained earnings/total assets, earnings before interest and taxes/total assets, market value of equity/book value of total liabilities, and sales/total assets. Common stock/total assets is not a component of the Z score model.

Which of the Following Financial Ratios Is Not a Component