Which of the following would be viewed as a measure of the firm's ability to meet its long-term financial obligations?
A)Debt ratio
B)Balance sheet ratio
C)Return on investment
D)Operating ratio
E)Liquidity ratio

Question

Quizplus · Accepted Answer

The debt ratio measures the proportion of a company's assets that are financed by debt, which indicates the extent to which the firm is relying on borrowed funds to finance its operations. A higher debt ratio may indicate a greater risk of defaulting on long-term financial obligations.

Which of the Following Would Be Viewed as a Measure