An appraisal of a company's long term financial stability relative to a second company's long term financial stability can be achieved by:

Question

Quizplus · Accepted Answer

Comparing each company's debt ratio gives insight into their long term financial stability as it measures how much of a company's assets are financed by debt. A lower debt ratio indicates that a company has less financial risk and is more stable in the long term.

An Appraisal of a Company's Long Term Financial Stability Relative