Which of the following rations considers the relationship between equity and long-term borrowing?
A) Quick ratio
B) Current ratio
C) Capital gearing ratio
D) ROCE

Question

Quizplus · Accepted Answer

The Capital gearing ratio measures the relationship between equity and long-term borrowing. It helps in assessing the potential risk associated with the capital structure of a company. Quick ratio, Current ratio, and ROCE do not take into consideration the long-term borrowing of a company.

Which of the Following Rations Considers the Relationship Between Equity