Which of the following terms measures the degree to which managers use debt (borrow money)or equity (issue new shares)to finance ongoing operations?
A)Gross profit margin
B)Times-covered ratio
C)Return on investment
D)Quick ratio
E)The current ratio

Question

Quizplus · Accepted Answer

The times-covered ratio, also known as the interest coverage ratio, measures a company's ability to meet its debt obligations, reflecting the degree to which managers use debt to finance operations.

Which of the Following Terms Measures the Degree to Which