A bank has a concern about the Wilson Company's debt level.They feel that it is too high.What ratio are they most likely to examine to answer this question?

Question

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The ratio that best measures a company's debt level is the Long-term debt/(Long-term debt + Net worth) ratio, also known as the debt-to-equity ratio. This ratio shows the proportion of a company's long-term debt to its total equity, indicating how much of the company's assets are being financed by debt. A high debt-to-equity ratio indicates that a company has a high debt level, which can be a concern for lenders or investors.

A Bank Has a Concern About the Wilson Company's Debt