The extent to which assets are financed by borrowed funds and other liabilities is indicated by:

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Financial leverage ratios indicate the extent to which assets are financed by borrowed funds and other liabilities. Liquidity ratios measure a company's ability to pay off its immediate debt obligations, asset utilization ratios measure how efficiently a company uses its assets to generate revenue, and profitability ratios measure a company's ability to generate profits from its operations.

The Extent to Which Assets Are Financed by Borrowed Funds