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

Question

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

Quizplus · Accepted Answer

Jackson, Inc. has the highest debt to equity ratio of 1.50, indicating it uses more debt relative to equity compared to the other companies, which implies greater financial risk.

The Debt to Equity Ratio of Four Companies Is Given