The
debt ratio is the ratio of total debt divided by total equity.( )
debt ratio is the ratio of total debt divided by total equity.( )
举一反三
- The cash flow ratio is the ratio of ( ) A: net cash inflow to total debt B: gross cash inflow to total debt C: net cash inflow to net debt D: gross cash inflow to net debt
- What type of ratio is revenue divided by average working capital and what type of ratio is average total assets divided by average total equity Revenue/Average working capital Average total assets/Average total equity ①A. Activity ratio Liquidity ratio ②B. Profitability ratio Liquidity ratio ③C. Activity ratio Solvency ratio A: ① B: ② C: ③
- Which of the following statements best compares long-term borrowing capacity ratios? A: The debt/equity ratio is more conservative than the debt ratio. B: The debt ratio is more conservative than the debt/equity ratio. C: The debt/equity ratio is more conservative than the debt to tangible net worth ratio. D: The debt to tangible net worth ratio is more conservative than the debt/equity ratio.
- Corner Books has a debt-equity ratio of .57. What is the total debt ratio? A: 2.75 B: 0.3 C: 2.27 D: 0.44 E: 0.36
- If a firm has a debt to owners' equity ratio of .75 (or 75%) we can conclude that A: it has relied more on debt than equity to finance its operations. B: the firm is likely to have trouble paying its short-term debts when they come due. C: its total liabilities are less than its owners' equity. D: the firm has expenses that are exactly 75% of its gross profit.