Which ratios measure a company's long-term debt-paying ability and its financing structure?

Question

Quizplus · Accepted Answer

Solvency ratios evaluate a company's ability to meet its long-term debt obligations and measure the proportion of debt in its financing structure. Liquidity ratios measure a company's ability to meet its short-term debt obligations, while profitability ratios assess a company's ability to generate profits. So, the best choice is A, Solvency.

Which Ratios Measure a Company's Long-Term Debt-Paying Ability and Its