Which ratios measure a company's long-term debt paying ability and its financing structure?
A)Profitability
B)Liquidity
C)Solvency
D)None of the other answers are correct.

Question

Quizplus · Accepted Answer

Solvency ratios are used to analyze a company's long-term debt-paying ability and its financing structure. Profitability ratios assess a company's success in generating profits and how these profits are used to reward investors. Liquidity ratios such as the current ratio or the quick ratio indicate a firm's short-term ability to pay its bills.

Which Ratios Measure a Company's Long-Term Debt Paying Ability and Its