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Assume that all you have available are data for the following ratios and your firm and your industry. Total Asset Turnover = Revenues/Assets Total Margin

Assume that all you have available are data for the following ratios and your firm and your industry.

Total Asset Turnover = Revenues/Assets
Total Margin = EBIT/Revenues
Net Profit Margin = Earnings/Revenues
Times Interest Earned = EBIT/Interest
Return on Equity = Earnings/Equity

If you want to evaluate the financial risk of your company and you can only use one of the measures, which one would it be and why?

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