BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Leverage ratios includes the following except:
|
|
Debt Ratio
|
|
|
Debt to Equity Ratio
|
|
|
Cash Ratio
|
|
|
Interest Coverage Ratio
|
Explanation:
Detailed explanation-1: -Common leverage ratios include the debt-equity ratio, equity multiplier, degree of financial leverage, and consumer leverage ratio. Banks have regulatory oversight on the level of leverage they are can hold.
Detailed explanation-2: -The three main financial leverage ratios are: debt ratio, debt-to-equity ratio and interest coverage ratio. The debt ratio shows how well a company can pay their liabilities with their assets.
Detailed explanation-3: -Quick ratio is a liquidity ratio or short term solvency ratio. Whereas the remaining three ratios are leverage ratios.
There is 1 question to complete.