If a company's debt ratio is much higher than the industry average, the company should be able to pay its debts in tough times.

Name: If a company's debt ratio is much higher than the industry average, the company should be able to pay its debts in tough times.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A higher debt ratio indicates that a company has more debt relative to its assets, which can make it more difficult to pay its debts during tough times compared to companies with lower debt ratios.

If a Company's Debt Ratio Is Much Higher Than the Industry