Debt management ratios show a company how well its assets are managed.

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Debt management ratios, such as debt-to-equity and interest coverage ratios, indicate a company's ability to handle its outstanding debt and interest expenses. They do not directly relate to how well a company manages its assets. Asset management ratios, such as inventory turnover and receivables turnover ratios, are used to evaluate a company's efficiency in managing its assets.

Debt Management Ratios Show a Company How Well Its Assets