Which ratio measures a company's ability to meet its long-term obligations?
Practice Questions
1 question
Q1
Which ratio measures a company's ability to meet its long-term obligations?
Current Ratio
Quick Ratio
Debt to Equity Ratio
Gross Profit Margin
The Debt to Equity Ratio measures a company's financial leverage and its ability to meet long-term obligations by comparing total liabilities to shareholders' equity.
Questions & Step-by-step Solutions
1 item
Q
Q: Which ratio measures a company's ability to meet its long-term obligations?
Solution: The Debt to Equity Ratio measures a company's financial leverage and its ability to meet long-term obligations by comparing total liabilities to shareholders' equity.
