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    to which financial ratios would you pay most attention

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    Credit Analysis. Financial ratios were described in Chapter 17. If you were the credit manager,
    to which financial ratios would you pay most attention?

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    https://brainmass.com/business/finance/to-which-financial-ratios-would-you-pay-most-attention-62858

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    Hi there,

    If I were a credit manager, I would pay the most attention to the following ratios:

    Bad-debt to Accounts Receivable ratio measures expected uncollectibility on credit sales. An increase in bad debts is a negative sign, since it indicates greater realization risk in accounts receivable and possible future write-offs.

    Formula: Bad Debts / Accounts Receivable

    Bad-Debt to Sales Ratio
    Bad-debt ratios measure expected uncollectibility on credit sales. An increase in bad debts is a negative sign, since it indicates greater realization risk in accounts receivable and possible future write-offs.

    Formula: Bad Debts / Sales

    Current Ratio: A liquidity ratio that measures a company's ability to pay short-term obligations; calculated by dividing current assets by current liabilities. This also helps to give an idea as to the efficiency of the company's ...

    $2.19

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