Which of the following statement is INCORRECT? The return on invested capital measures the total return...

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Which of the following statement is INCORRECT? The return on invested capital measures the total return that a company has provided for its investors. The days sales outstanding tells us how long it takes, on average, to collect after a sale is made. The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time. Debt management ratios show the extent to which a firm's managers are attempting to magnify returns on owners' capital through the use of financial leverage. Profitability ratios show the combined effects of liquidity, asset management, and debt management on a firm's operating results. The times-interest-earned ratio measures the extent to which net income can decline before the firm is unable to meet its annual interest costs. Which of the following statement is INCORRECT? The return on invested capital measures the total return that a company has provided for its investors. The days sales outstanding tells us how long it takes, on average, to collect after a sale is made. The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time. Debt management ratios show the extent to which a firm's managers are attempting to magnify returns on owners' capital through the use of financial leverage. Profitability ratios show the combined effects of liquidity, asset management, and debt management on a firm's operating results. The times-interest-earned ratio measures the extent to which net income can decline before the firm is unable to meet its annual interest costs.

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The statement that appears to be INCORRECT is The timesinterestea... View the full answer