Asked by
Molly Stonebraker
on Dec 09, 2024Verified
Return on equity will increase if the _________________.
A) profit margin decreases
B) return on assets increases
C) debt-equity ratio decreases
D) accounts receivable turnover increases
E) total asset turnover decreases
Debt-Equity Ratio
A ratio indicating a firm's financial leverage, determined by dividing its total debts by its shareholder equity.
Accounts Receivable Turnover
A financial ratio that measures how efficiently a company collects revenue from its customers by dividing total net credit sales by the average accounts receivable.
- Understand the interrelations between profitability, asset management, and leverage ratios.
Verified Answer
TT
Learning Objectives
- Understand the interrelations between profitability, asset management, and leverage ratios.