What conclusions would ford chief financial officer arrive

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Reference no: EM132656015

Problem 1: What measures the productivity level of a business?

Group of answer choices

Option 1: current ratio

Option 2: profit margin on revenue

Option 3: none of these

Option 4: average collection period

Option 5: total assets turnover

Problem 2: Which of the following is a debt-coverage ratio?

Group of answer choices

Option 1: times-interest-earned

Option 2: inventory turnover

Option 3: return on equity

Option 4: earnings per share

Option 5: none of these

Problem 3: Ford has a times-interest-earned ratio of 4.8 times, and Toyota has a times-interest-earned ratio of 5.3 times. What conclusions would Ford's chief financial officer arrive at looking at these numbers and Toyota's ratio?

Group of answer choices

Option 1: Toyota is in a better position to cover its interest costs than Ford.

Option 2: Ford is in a better position to pay interest than Toyota.

Option 3: None of these.

Option 4: The times-interest-earned ratio is of no interest to lenders because the ratios are so close together.

Reference no: EM132656015

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