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Which of the following is not an action that can help improve a company's credit rating? (The financial measure used in determining company credit
Which of the following is not an action that can help improve a company's credit rating? (The financial measure used in determining company credit ratings are discussed in the Help document associated with page 5 of the Camera & Drone Journal.) Use a portion on the company's internal cash flows and new issues of common stock to prepay 5-year and/or 10-year loans Strive to increase operating profits (higher operating profits boost the company's interest coverage ratio) Make sure the company pays off any 1-year loans (and temporarily avoids further use of 1-years loans) because 1-year loans are considered a current liability and thus reduce the company's current ratio Temporarily reduce annual dividend payments to shareholders and use the cash saved from lower dividend payments to help prepay 5-year and/or 10-year loans Place increased attention on expanding operations in all four geographic regions -- the resulting growth in sales and market share companywide will increase the company's market coverage and improve the company's financial standing in the eyes of creditors
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