Which one of the following is a leverage measure?
A) times interest earned
B) net working capital
C) return on equity
D) net profit margin

Question

Quizplus · Accepted Answer

Times interest earned is a leverage measure because it indicates how well a company can cover its interest obligations with its earnings before interest and taxes (EBIT). It is a direct indicator of a company's financial leverage and its ability to meet its debt obligations.

Which One of the Following Is a Leverage Measure