The lower the better for this ratio:
A) times interest earned.
B) total asset turnover.
C) debt ratio.
D) net margin.
E) current ratio.

Question

Quizplus · Accepted Answer

The debt ratio is a financial ratio that measures the extent of a company's leverage. A lower debt ratio indicates that a company has less debt relative to its assets, which is generally considered better as it suggests lower financial risk.

The Lower the Better for This Ratio