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if managers want to boost a company's credit rating from B+ to A, then they need to take actions that will result in: A)A bigger ratio of net profits to sales revenues and a decline in the company dividend ratio B) A decline in the company default risk ratio and an increase in the companys ROE C) A higher current ratio and fewer days of inventory D) an increase in the company interest coverage ratio and a decline in the company debt to asset ratio E) bigger year end cash balances, annual increases in EPS of 5% or more, and annual dividend increases of .10 per share

Sagot :

An increase in the company interest coverage ratio and a decline in the company debt to asset ratio.

What is asset ratio?

By dividing a company's earnings after taxes by its total assets, one may get the return on total assets ratio. This profitability indicator enables you to assess how your business makes profits and how you stack up against your rivals.

The ratio of a company's sales or revenues to the value of its assets is known as the asset turnover ratio. It serves as a gauge of how effectively a business uses its resources to generate revenue. As a result, asset turnover ratio can be used to gauge a business' performance.

The interest coverage ratio: defined as annual operating profit divided by annual interest payments. An interest coverage ratio of 2.0 is considered “rock-bottom minimum” by credit analysts.   A coverage ratio of 5.0 to 10.0 is considered much more satisfactory for companies

Hence, an increase in the company interest coverage ratio and a decline in the company debt to asset ratio will boost the company credit rating  

To learn more about interest coverage ratio visit:https://brainly.com/question/28963563

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