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Which of the following would credit rating agencies (CRAs) most likely focus on in order to test how well an issuer's management uses the assets under its control to generate sales and profit?
Suggested Answer: A
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12 comments · newest first
TH
Theresia
1 hour ago
Surprised that people overlook B) Capital structure analysis. It’s important too!
TR
Tresa
5 days ago
I think C) Profitability and cash flow analysis is more relevant.
HU
Hubert
10 days ago
Definitely A) Efficiency ratios. They measure how well assets are used.
BO
Bobbye
16 days ago
B) Capital structure analysis has its place too, though.
AL
Aleta
21 days ago
I agree with A, efficiency is key for CRAs!
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Ronald
26 days ago
Wait, are we really saying efficiency ratios are the main focus? Seems off.
JO
Jose
1 month ago
I think C) Profitability and cash flow analysis is more relevant.
SV
Svetlana
1 month ago
Definitely A) Efficiency ratios! They show how well assets are used.
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Fidelia
1 month ago
I lean towards C) Profitability and cash flow analysis, as it seems to directly relate to generating sales and profit.
JO
Josphine
2 months ago
I practiced a similar question where capital structure analysis was mentioned, but I feel like it’s not the main focus here.
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Lisbeth
2 months ago
I'm not entirely sure, but I remember something about profitability and cash flow analysis being important for CRAs.
HI
Hillary
2 months ago
I think the answer might be A) Efficiency ratios since they measure how well a company uses its assets.