The debt to equity ratio of four companies is given below. $$\begin{array} { | l | c | }
\hline & \text { Debt to equity ratio } \
\hline \text { Lewis, Inc. } & 1.30 \
\hline \text { Tackson, Inc. } & 1.50 \
\hline \text { Tones Corp. } & 0.88 \
\hline \text { Roberts Corp. } & 0.92 \
\hline
\end{array}$$
- Based on the debt to equity ratio, which of the following companies has the least financial risk?

Question

The debt to equity ratio of four companies is given below. $$\begin{array} { | l | c | } 
\hline & \text { Debt to equity ratio } \
\hline \text { Lewis, Inc. } & 1.30 \
\hline \text { Tackson, Inc. } & 1.50 \
\hline \text { Tones Corp. } & 0.88 \
\hline \text { Roberts Corp. } & 0.92 \
\hline
\end{array}$$ 
- Based on the debt to equity ratio, which of the following companies has the least financial risk?

Quizplus · Accepted Answer

The company with the lowest debt to equity ratio is considered to have the least financial risk because it relies less on borrowed money. Tones Corp. has the lowest ratio at 0.88, indicating the least financial risk among the options provided.

The Debt to Equity Ratio of Four Companies Is Given