Match the ratio that goes with each formula.
-$\frac {\text { Total Liabilities }} { \text {Shareholders' Equity - Intangible Assets} }$

A)times interest earned
B)fixed charge coverage
C)debt ratio
D)debt/equity ratio
E)debt to tangible net worth

Question

Match the ratio that goes with each formula.
-$\frac {\text { Total Liabilities }} { \text {Shareholders' Equity - Intangible Assets} }$

A)times interest earned
B)fixed charge coverage
C)debt ratio
D)debt/equity ratio
E)debt to tangible net worth

Quizplus · Accepted Answer

This ratio is the debt to tangible net worth ratio. It measures the company's financial leverage by comparing its total liabilities to its tangible net worth (shareholders' equity minus intangible assets).

Match the Ratio That Goes with Each Formula Total Liabilities Shareholders’ Equity - Intangible Assets\frac {\text { Total Liabilities }} { \text {Shareholders' Equity - Intangible Assets} }Shareholders’ Equity - Intangible Assets Total Liabilities ​

Match the Ratio That Goes with Each Formula $\frac {\text { Total Liabilities }} { \text {Shareholders' Equity - Intangible Assets} }$