单选题
When assessing credit risk, which of the following ratios would best measure a firm" s tolerance for additional debt and a firm" s operational efficiency?
Ratio 1: Retained cash flow (CFO-dividends) divided by total debt.
Ratio 2: Current assets divided by current liabilities.
Ratio 3: Earnings before interest, taxes, depreciation, and amortization divided by revenues.
Tolerance for leverage Operational efficiency
①A. Ratio 3 Ratio 1
②B. Ratio 2 Ratio 3
③C. Ratio 1 Ratio 3
【正确答案】
C
【答案解析】A firm"s tolerance for additional debt can be measured by its capacity to repay debt. Retained cash flow divided by total debt is one of several measures that can be used. Operational efficiency refers to the firm" s cost structure and can be measured by the "margin" ratios. EBITDA divided by sales is one version of an operating margin ratio. The current ratio is a measure of short-term liquidity.