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A supplier to a company would be most interested in the company's

A) asset turnover.
B) profit margin.
C) current ratio.
D) earnings per share.

User Radbyx
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Final answer:

A supplier is most interested in a company's profit margin because it provides insight into the company's profitability and ability to pay for goods and services. The profit margin reflects the financial health and immediate payment capabilities of the buying company.

Step-by-step explanation:

A supplier to a company would be most interested in the company's B) profit margin.

Suppliers are primarily concerned with a company's ability to pay for the goods and services provided. A company's profit margin is an indicator of its profitability, which suggests whether the company can sustain payments for its orders. If a company is generating higher profits, it indicates that there is a lesser risk for the supplier in terms of the company defaulting on payments. Whereas, metrics like asset turnover, current ratio, and earnings per share, while important, are not as directly related to the company's immediate financial capacity to fulfill payments to its suppliers as the profit margin is. In essence, the profit margin reflects the company's operational efficiency and financial health over a specific period, thereby reassuring suppliers that their invoices will be paid promptly.

User Linxy
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