Profitability ratios allow one to measure the ability of the firm to earn an adequate profit compared to sales, total assets, and invested capital.
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A trade creditor is most concerned about a firm's profitability ratios.
A. 对
B. 错
Debt utilization ratios are used to evaluate the firm's debt position with regard to its asset base and earning power.
A. 对
B. 错
Return on equity will not change if the firm increases its use of debt.
A. 对
B. 错
A current ratio of 2 to 1 is always acceptable for a company in any industry.
A. 对
B. 错