Which one of the following is the best indicator of long-term debt paying ability? A)Working capital turnover. B)Asset turnover. C)Current ratio. D)Debt to total assets ratio.
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Which one of the following is the best indicator of long-term debt paying ability?
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- Calculate the projected debt ratio, debt-to-equity ratio, liabilities-to-assets ratio, times-interest-earned ratio, and EBITDA coverage ratios. How does Computron compare with the industry with respect to financial leverage? What can you conclude from these ratios?Which one of the following ratios is relevant to assess long-term solvency? A. Current Ratio B. Debt-Service Coverage Ratio C. Return on Equity D. Profit MarginWhich ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob. Current ratioc. Liability ratiod. Asset ratio
- Total debt-to-assets ratio, debt-to-equity ratio and Long-term debt-to-capital ratio are examples of what type or category of ratios? a. Activity O b. Profitability O c. Liquidity O d. LeverageThe debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total assets.c. total assets by long-term liabilities.d. long-term liabilities by total assets.Which of the following ratios measures financial leverage? a. The return on assets ratio. b. The inventory turnover ratio. c. The times interest earned ratio. d. The debt to equity ratio.
- The debt ratio is used primarily as a measure of: Short-term liquidity. Profitability. Creditors' long-term risk. Return on Investment.Which of the following ratios is used to analyze liquidity?a. Earnings per share.b. Debt-to-assets.c. Current ratio.d. Both b and c.1. Provide a Short-term Solvency Ratio Analysis based on D/E Ratio, Equity Ratio, and Debt ratio. 2. Provide a Long-term Solvency Ratio Analysis based on D/E Ratio and Debt Ratio.
