Question : Which of the following tells long-term solvency?
Option 1: Debt equity ratio
Option 2: Proprietary ratio
Option 3: Fixed assets ratio
Option 4: All of the above

Question

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

Option 1: Debt equity ratio

Option 2: Proprietary ratio

Option 3: Fixed assets ratio

Option 4: All of the above

Team Careers360 · Accepted Answer

Correct Answer: All of the above

Solution : The solvency ratio assists us in determining a company's ability to meet long-term financial obligations.
The debt-to-assets ratio, interest coverage ratio, equity ratio, and debt-to-equity (D/E) ratio, proprietary ratios are the main solvency ratios.
Hence, the correct option is 4.

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Question : Which of the following tells long-term solvency?Option 1: Debt equity ratioOption 2: Proprietary ratioOption 3: Fixed assets ratioOption 4: All of the above

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Question : Which of the following tells long-term solvency?
Option 1: Debt equity ratio
Option 2: Proprietary ratio
Option 3: Fixed assets ratio
Option 4: All of the above