Question : The long-term solvency ratio is indicated by
Option 1: current ratio
Option 2: quick ratio
Option 3: net profit ratio
Option 4: debt-equity ratio

Question

Question : The long-term solvency ratio is indicated by

Option 1: current ratio

Option 2: quick ratio

Option 3: net profit ratio

Option 4: debt-equity ratio

Team Careers360 · Accepted Answer

Correct Answer: debt-equity ratio

Solution : Answer = debt-equity ratio

The debt-equity ratio, a long-term solvency ratio, measures a company's financial leverage by comparing its long-term debt to its equity. It indicates the proportion of financing provided by creditors relative to shareholders, assessing the company's ability to meet long-term obligations.
Hence, the correct option is 4.

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Question : The long-term solvency ratio is indicated byOption 1: current ratioOption 2: quick ratioOption 3: net profit ratioOption 4: debt-equity ratio

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Question : The long-term solvency ratio is indicated by

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Question : ________ratio is a variation of the debt-equity ratio and gives the same indication as the debt-equity ratio. In this ratio, total assets are expressed in relation to long-term debts.

Question : Which of the following tells long-term solvency?

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Question : The long-term solvency ratio is indicated by
Option 1: current ratio
Option 2: quick ratio
Option 3: net profit ratio
Option 4: debt-equity ratio