Which of the following does the debt ratio measure?
A)The company's overall ability to pay its liabilities
B)The company's ability to pay current liabilities with current assets
C)The company's ability to invest in growth
D)The proportion of the company's assets that are financed with equity

Question

Quizplus · Accepted Answer

The debt ratio measures the proportion of a company's assets that are financed by debt, indicating its overall ability to pay its liabilities.

Which of the Following Does the Debt Ratio Measure