indicate how much of a company's net worth and asset commitment is being financed with debt.
A)Liquidity ratios
B)Market ratios
C)Profitability ratios
D)Activity ratios
E)Leverage ratios

Question

Quizplus · Accepted Answer

Leverage ratios measure the extent to which a company's activities are financed with debt. These ratios include debt to equity ratio, debt to assets ratio, and interest coverage ratio. These ratios are used to indicate how much of a company's net worth and asset commitment is being financed with debt.

Indicate How Much of a Company's Net Worth and Asset