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

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.
-$\frac {\text { Total Liabilities  }} { \text {Shareholders' Equity} }$

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

Quizplus · Accepted Answer

The ratio of Total Liabilities to Shareholders' Equity is known as the debt/equity ratio. This ratio is a measure of a company's financial leverage and indicates the balance between debt financing and equity financing.

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

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