Question: A firm faces financial pressures from attempting to grow too rapidly. Which of the following ratios would you expect to be impacted the most by these pressures? Why?
- Current ratio
- Quick ratio
- Inventory turnover ratio
- Days sales outstanding
- Fixed assets turnover ratio
- Total assets turnover ratio
- Debt ratio
- Times-interest-earned ratio
- EBITDA coverage ratio
- Profit margin on sales
- Basic earning power
- Return on total assets (ROA)
- Return on common equity (ROE)
- Price/earnings ratio
- Price/cash flow ratio
- Market/book ratio