Which ratio is not a measure of long-term solvency?
A) Total debt ratio.
B) Price-earnings ratio.
C) Debt/equity ratio.
D) Equity multiplier
E) Times interest earned.

Question

Quizplus · Accepted Answer

The price-earnings ratio is not a measure of long-term solvency; it is a valuation ratio that compares a company's stock price to its earnings per share, used primarily by investors to evaluate the relative value of a company's shares.

Which Ratio Is Not a Measure of Long-Term Solvency