MANAGEMENT

Detailed explanation-1: -The answer is A. The debt utilization ratios will measure the efficiency in using debts for the core business. It measures the degree of debt to firm’ assets or the relationship between debt and shareholder’s equity.

Detailed explanation-2: -The debt-to-total assets ratio is primarily used to measure a company’s ability to raise cash from new debt. That evaluation is made by comparing the ratio to other companies in the same industry. The higher a company’s debt-to-total assets ratio, the more it is said to be leveraged.

Detailed explanation-3: -Liquidity ratios focus on a firm’s ability to pay its short-term debt obligations. The information you need to calculate these ratios can be found on your balance sheet, which shows your assets, liabilities, and shareholder’s equity. Common liquidity ratios are the current ratio, the quick ratio, and the cash ratio.

Detailed explanation-4: -Capital structure refers to the specific mix of debt and equity used to finance a company’s assets and operations.