A company with a low debt ratio is well-positioned to pay its outstanding debt.

Name: A company with a low debt ratio is well-positioned to pay its outstanding debt.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A low debt ratio reflects that a company has a lower level of debt compared to its assets and equity, which indicates that it is less reliant on debt financing. This puts the company in a stronger financial position to pay off any outstanding debt as it has more resources available to cover its debt obligations.

A Company with a Low Debt Ratio Is Well-Positioned to Pay