The _____,a debt utilization ratio,is a measure of the safety margin a company has with respect to the interest payments it must make to its creditors.
A)liquidity ratio
B)current ratio
C)profitability ratio
D)times interest earned ratio
E)debt to total assets ratio

Question

Quizplus · Accepted Answer

The times interest earned ratio, also known as the interest coverage ratio, measures a company's ability to make interest payments on its debt, indicating how many times a company's earnings can cover its interest expenses. This is a key indicator of financial stability and debt servicing capacity.

The _____,A Debt Utilization Ratio,is a Measure of the Safety