Which of the following ratios is given the highest significance rating by commercial loan officers?
A)Inventory Turnover In Days
B)Degree of Financial Leverage
C)Times Interest Earned
D)Fixed Charge Coverage
E)Debt/Equity

Question

Quizplus · Accepted Answer

Debt/Equity ratio is often given the highest significance by commercial loan officers as it indicates the proportion of debt to equity, reflecting the financial leverage and risk level of a company.

Which of the Following Ratios Is Given the Highest Significance