Which of the following ratios best reflects the solvency of


As a loan officer at California Bank you are required to interpret the results of various financial ratios. Which of the following ratios best reflects the solvency of a prospective client who has applied for a loan?

A. A Return on Sales Ratio of .022 or 2.2%.

B. A current ratio of 2.14:1.00

C. A debt to equity ratio of .546 or 54.6%

D. An acid test ratio of 1.00:1.00

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Financial Management: Which of the following ratios best reflects the solvency of
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