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

Dividend yield is more relevant to investors interested in the income generated from their investment in a company's stock, rather than to short-term creditors concerned with the company's liquidity and ability to repay short-term obligations.

Which One of the Following Ratios Would Not Likely Be