Which of the following statements is correct?

• Receivables turnover ratio → A higher ratio is desirable as it indicates efficient collection of receivables. Hence, (A) is incorrect. • Net profit margin increase with constant sales/assets → This would improve ROI, not reduce it. Hence, (B) is incorrect. • Interest coverage ratio is calculated as EBIT ÷ Interest Expense. It is unaffected by the tax rate, so (C) is incorrect. • Debt-to-equity ratio → A lower ratio shows that the firm is less dependent on debt financing and relies more on equity. This reduces the risk of financial distress, making (D) correct.