Which of the following is not a measure of a company's a solvency?
A) Debt to equity ratio
B) Equity to assets ratio
C) Sales to assets ratio
D) Debt to assets ratio

Question

Quizplus · Accepted Answer

The sales to assets ratio is a measure of a company's efficiency in utilizing its assets to generate revenue. It is not a measure of solvency, which pertains to a company's ability to meet its long-term financial obligations. The other options (debt to equity ratio, equity to assets ratio, and debt to assets ratio) all provide insight into a company's solvency.

Which of the Following Is Not a Measure of a Company's