Question : Which of the following is the Capital Gearing Ratio?
Option 1: Profitability Ratio
Option 2: Activity Ratio
Option 3: Long-term Solvency Ratio
Option 4: None of the above

Question

Question : Which of the following is the Capital Gearing Ratio?

Option 1: Profitability Ratio

Option 2: Activity Ratio

Option 3: Long-term Solvency Ratio

Option 4: None of the above

Team Careers360 · Accepted Answer

Correct Answer: Long-term Solvency Ratio

Solution : A measure of both capital structure and long-term solvency is the capital gearing ratio. The company is referred to as high geared if the capital gearing ratio is larger than one.
Hence option 3 is the correct answer.

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Question : Which of the following is the Capital Gearing Ratio?Option 1: Profitability RatioOption 2: Activity RatioOption 3: Long-term Solvency RatioOption 4: None of the above

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Question : Which of the following is the Capital Gearing Ratio?
Option 1: Profitability Ratio
Option 2: Activity Ratio
Option 3: Long-term Solvency Ratio
Option 4: None of the above