Which one of the following ratios would not likely be used by a short-term creditor in evaluating whether to sell on credit to a company?
A)Current ratio
B)Dividend yield
C)Asset turnover
D)Receivables turnover

Question

Quizplus · Accepted Answer

Short-term creditors are interested in the company's ability to pay its debts in the short term. Dividend yield, which is the ratio of dividends paid to the stock price, is not directly relevant to this evaluation. The other ratios listed (current ratio, asset turnover, and receivables turnover) all provide insight into a company's liquidity and ability to meet its short-term obligations.

Which One of the Following Ratios Would Not Likely Be