Solvency ratios measure a company's ability to meet its long-term obligations or take on more debt.

Name: Solvency ratios measure a company's ability to meet its long-term obligations or take on more debt.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Solvency ratios, such as debt-to-equity and interest coverage, are used to assess a company's ability to meet its long-term obligations, including the repayment of debt, and indicate whether the company can take on additional debt in the future.

Solvency Ratios Measure a Company's Ability to Meet Its Long-Term