If an Analyst's Goal Is to Determine How Effectively a Firm

Multiple Choice

If an analyst's goal is to determine how effectively a firm is managing its assets, which of the following sets of ratios would he or she examine?

A) Profit margin, current ratio, and fixed charge coverage ratio
B) Quick ratio, debt ratio, and times interest earned
C) Inventory turnover ratio, days sales outstanding, and fixed asset turnover ratio
D) Total assets turnover ratio, price earnings ratio, and return on total assets
E) Time interest earned, profit margin, and fixed asset turnover ratio