BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Leverage ratios includes the following except:
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Debt Ratio
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Debt to Equity Ratio
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Cash Ratio
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Interest Coverage Ratio
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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.
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