________ are used to measure the level of indebtedness of a small business.

Question

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Leverage ratios are used to measure the level of indebtedness of a small business. These ratios analyze the proportion of debt in the capital structure of the business and its capacity to meet its debt obligations. Some examples of leverage ratios include debt-to-equity ratio, debt-to-asset ratio, and interest coverage ratio. Profitability ratios measure the profitability of a business, activity ratios assess the efficiency of a business in using its assets, and financial ratios encompass a wide range of ratios that evaluate different aspects of a company's financial performance.

________ Are Used to Measure the Level of Indebtedness of a Small