A supplier to a company would probably be most interested in the
A)debt to total assets.
B)price-earnings ratio.
C)current ratio.
D)earnings per share.

Question

Quizplus · Accepted Answer

A supplier would likely be most interested in the current ratio, as it indicates a company's ability to pay its current liabilities with its current assets. This is important to a supplier as they want to ensure that the company they are supplying to has the funds to pay for their goods or services in a timely manner. The debt to total assets ratio and price-earnings ratio are more relevant to investors, while earnings per share is more relevant to shareholders.

A Supplier to a Company Would Probably Be Most Interested