All of the following are commonly used indicators used to analyze a firm's debt situation, except:
A) asset coverage.
B) debt to equity ratio.
C) interest coverage.
D) pre-tax return on capital.

Question

Quizplus · Accepted Answer

Pre-tax return on capital is not typically used as an indicator to analyze a firm's debt situation. It is more focused on the profitability and efficiency of a company's capital use, rather than directly assessing the firm's debt levels or its ability to manage debt. In contrast, asset coverage, debt to equity ratio, and interest coverage are directly related to analyzing a firm's debt situation.

All of the Following Are Commonly Used Indicators Used to Analyze