Your ________ is found by dividing total debt or liabilities by total assets.
A)debt ratio
B)current ratio
C)net worth
D)asset ratio

Question

Quizplus · Accepted Answer

The debt ratio is calculated by dividing the total debt or liabilities of a company by its total assets. This ratio provides information about the level of leverage or debt being used by the company to finance its operations. A high debt ratio may indicate that the company is relying too heavily on debt to finance its operations, which could increase its financial risk. Therefore, the debt ratio is an important financial metric used by investors and analysts to evaluate the financial health of a company.

Your ________ Is Found by Dividing Total Debt or Liabilities