Which of the following is a long-term solvency ratio?
A) Return on equity
B) Dividends yield
C) Debt to equity ratio
D) Payables turnover

Question

Quizplus · Accepted Answer

Debt to equity ratio is a long-term solvency ratio that measures the company's ability to pay its long-term liabilities using its equity. Return on equity, dividends yield, and payables turnover are all short-term profitability ratios.

Which of the Following Is a Long-Term Solvency Ratio