As with the debt ratio and the debt/equity ratio,from a long-term,debt-paying ability view,the lower the debt to tangible net worth ratio,the better.

Name: As with the debt ratio and the debt/equity ratio,from a long-term,debt-paying ability view,the lower the debt to tangible net worth ratio,the better.
Brand: Quizplus
Rating: 4.7 (32 reviews)

Question

Quizplus · Accepted Answer

A lower debt to tangible net worth ratio indicates that the company has less debt in relation to its tangible assets, making it less risky and better equipped to pay off its long-term debts.

As with the Debt Ratio and the Debt/equity Ratio,from a Long-Term,debt-Paying