Which ratio measures the percentage of company's assets that are financed by debt?
A)Debt to equity
B)Asset turnover
C)Debt to assets ratio
D)Return on investment

Question

Quizplus · Accepted Answer

The debt to asset ratio is: total liabilities/total assets. This ratio gives the percentage of the assets financed by debt.
Debt to equity ratio is Total liabilities/Total stockholders' equity. The debt to equity ratio compares creditor financing to owner financing. It is expressed as the dollar amount of liabilities for each dollar of stockholders' equity. The asset turnover ratio is: Net sales/Average total assets. The asset turnover ratio measures how many sales dollars were generated for each dollar of assets investe

Which Ratio Measures the Percentage of Company's Assets That Are