Creditors are most likely interested in the:
A) Fixed asset turnover.
B) Times interest earned ratio.
C) Earnings per share ratio.
D) Price-earnings ratio.
E) Return on assets ratio.

Question

Quizplus · Accepted Answer

Creditors are primarily interested in a company's ability to meet its interest obligations, which is directly measured by the Times Interest Earned Ratio. This ratio indicates how well a company can cover its interest expenses with its earnings before interest and taxes (EBIT).

Creditors Are Most Likely Interested in The