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

Question

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

Quizplus · Accepted Answer

Jackson, Inc. has the highest debt to equity ratio, indicating that they have more debt relative to equity, making them financially riskier compared to the other three companies.

The Debt to Equity Ratio of Four Companies Is Given