Which of the following is the least important for assessing the company's profile for a letter of credit?
A) Current ratio
B) Debt to equity ratio
C) Price to earnings ratio
D) Receivables turnover

Question

Quizplus · Accepted Answer

The price to earnings ratio is least important for assessing the company's profile for a letter of credit because it mainly reflects investor sentiment about the company's future prospects and does not necessarily indicate the company's ability to meet its financial obligations. The current ratio, debt to equity ratio, and receivables turnover are all important indicators of a company's financial health and ability to fulfill its payment obligations.

Which of the Following Is the Least Important for Assessing