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) Asset turnover
B) Receivables turnover
C) Dividend yield
D) Current ratio

Question

Quizplus · Accepted Answer

Dividend yield is not a ratio that is indicative of a company's ability to pay its debts in the short-term. Asset turnover, receivables turnover, and current ratio are all ratios that are commonly used by short-term creditors to evaluate a company's creditworthiness.

Which One of the Following Ratios Would Not Likely Be