Which of the following changes is the least favorable?
A)An increase in inventory turnover
B)A decrease in operating expenses
C)An increase in the price-earnings ratio
D)A decrease in the asset turnover

Question

Quizplus · Accepted Answer

A decrease in asset turnover means that the company is generating less revenue per dollar of assets, which is not favorable for the business. This could indicate poor management of assets or decreasing demand for the company's products or services. The other options suggest positive changes such as improving efficiency, reducing costs, and increasing market value.

Which of the Following Changes Is the Least Favorable