Which of the following is not a debt utilization ratio?
A) Debt to total assets
B) Times interest earned
C) Current ratio
D) Fixed charge coverage

Question

Quizplus · Accepted Answer

Current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. It is not a debt utilization ratio, as it does not take into account the level of debt a company has used to finance its operations. Debt to total assets, times interest earned, and fixed charge coverage all measure a company's use of debt and its ability to service that debt.

Which of the Following Is Not a Debt Utilization Ratio