GE is highly leveraged.Financial analysts look at its ____ ratio to determine if it can make interest payments.
A)coverage
B)operating
C)debt
D)return
E)None of these.

Question

Quizplus · Accepted Answer

The coverage ratio is used to determine a company's ability to make interest payments on its debt. Given that GE is highly leveraged, analysts would want to assess whether it can meet its interest payment obligations by looking at the coverage ratio.

GE Is Highly Leveraged