The times-covered ratio,which measures the degree to which managers use debt or equity to finance ongoing operations,is a type of financial ratio known as:
A)Current ratio
B)Liquidity ratio
C)Leverage ratio
D)Activity ratio
E)Profit ratio

Question

Quizplus · Accepted Answer

Leverage ratios,such as the debt-to-assets ratio and the times-covered ratio,measure the degree to which managers use debt or equity to finance ongoing operations.

The Times-Covered Ratio,which Measures the Degree to Which Managers Use