Which of the following is not a measure of a company's solvency?
A)Total debt to equity capital ratio
B)Short-term debt to total debt ratio
C)Sales to assets ratio
D)Long-term debt to equity capital ratio

Question

Quizplus · Accepted Answer

The sales to assets ratio measures a company's efficiency in using its assets to generate sales. It does not directly relate to a company's solvency, which is the ability to pay its debts as they come due. The other ratios listed all provide information on a company's solvency.

Which of the Following Is Not a Measure of a Company's