Which of the following most likely indicates strong "Capital" for a company?

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Unutilized lines of credit or loans can indicate strong capital for a company because they reflect available financial resources that the company can draw upon if needed. A healthy capital structure often allows for a certain level of borrowing capacity without straining the company's financial stability. This means that the company has access to credit that it has not yet tapped, which can serve as a financial buffer in times of need or enable it to pursue growth opportunities without immediately impacting cash flow or assets.

In contrast, high operational expenses do not reflect capital strength; instead, they can signal inefficiency or financial strain. Limited access to equity funding suggests difficulties in attracting investment, which may indicate a lack of investor confidence in the company’s prospects. A high fixed asset ratio may imply that a large portion of the company’s resources is tied up in long-term investments rather than liquid assets, which can restrict flexibility in funding operations. Therefore, the presence of unutilized credit lines or loans reflects an underlying strength in capital management and financial flexibility.

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