If you were a supplier of a company selling goods on 30-day terms, you would be most concerned with ratios measuring

Question

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As a supplier, the most important concern would be to assess the ability of the company to pay back the debt within the stipulated 30 days. Therefore, liquidity ratios such as current ratio, quick ratio, and cash ratio would be more relevant in this case. These ratios reflect the company's ability to meet its short-term financial obligations and make timely payments. The financial leverage, efficiency, and profitability ratios may be important for assessing the long-term financial health of the company, but they may not be as relevant for a supplier concerned about immediate payment.

If You Were a Supplier of a Company Selling Goods