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What does the ratio communicate

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Problem 1: During 2020, J Company reported an Operating Funds Ratio of 1.6, and P Company reported an Operating Funds Ratio of 1.097. What does this ratio communicate? Indicate all answers that are correct.

Group of answer choices

a. P Company is generating more operating cash flows.

b. J Compnay is doing a better job of converting its earnings into cash flows.

c. P Company is doing a better job of converting its earnings into cash flows.

d. J Company is generating more operating cash flow.

Reference no: EM132918626

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