Which of the following financial ratios has not been shown to be most predictive of company performance?
A) Debt to equity ratio
B) Inventory turnover
C) Profit margin
D) Cash flow yield

Question

Quizplus · Accepted Answer

While inventory turnover is an important financial ratio, it has not been shown to be as predictive of company performance as the other ratios listed. Debt to equity ratio, profit margin, and cash flow yield are all commonly used to evaluate a company's financial health and predict future performance.

Which of the Following Financial Ratios Has Not Been Shown