An analyst computes the following ratios for Iridescent Carpeting Inc. and compares the results to the industry averages:
Based on the above data, which of the following can the analyst conclude()
A. Iridescent Carpeting has better short-term liquidity than its competitors.
B. Iridescent Carpeting has per profitability than its competitors.
C. Iridescent Carpeting has more financial risk than its competitors.
参考答案:A
解析:
Based on the data provided, the analyst can conclude that Iridescent Carpeting has weaker profitability than its competitors based on the net profit margin and return on equity. The analyst can also conclude that the company has less financial leverage (risk) than the, industry average based on the total debt / total capital and the times interest earned ratios. The analyst can conclude that the company has better short-term liquidity than the industry average ( i. e. , its competitors ) based on the current ratio.