Which of the following is a debt management ratio?
A)Fixed charge coverage
B)P/E ratio
C)Return on sales
D)Current ratio

Question

Quizplus · Accepted Answer

Fixed charge coverage is a debt management ratio that measures a company's ability to cover fixed expenses, including interest and lease payments, with its operating income. The other options listed are profitability ratios (return on sales) and liquidity ratios (current ratio) and a valuation ratio (P/E ratio).

Which of the Following Is a Debt Management Ratio