Leverage ratios indicate
A)the relative amount of funds in the business supplied by shareholders.
B)a company's ability to pay short-term debts.
C)management's ability to generate a financial return on sales or investment.
D)the profit margins for the last six months.
E)the future profits from the current customer base.

Question

Quizplus · Accepted Answer

There are three categories of financial ratios: liquidity, leverage, and profitability. Leverage ratios show the relative amount of funds in the business supplied by creditors and shareholders.

Leverage Ratios Indicate