Question
You wonder what may be driving the high growth rate in sales of Company B, and decide to investigate whether they are giving very generous
You wonder what may be driving the high growth rate in sales of Company B, and decide to investigate whether they are giving very generous trade credit terms to customers, with long time periods before the customer has to pay. Which ratio directly looks at how long customers take to pay?
Select which one:
A. Days inventory or inventory turns
B. Days payable
C. Profit margin
D. Operating profit margin
E. Total assets turnover ratio
F. Return on equity
G.Market-to-book
H. Days sales outstanding
I. Quick
J. PE (Price to Equity)
K. Total debt
L. Debt-to-equity
M. TIE (Times Interest Earned)
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