Which of the following is a leverage ratio?
A) Return on equity
B) Dividends yield
C) Debt to equity ratio
D) Payables turnover

Question

Quizplus · Accepted Answer

Debt to equity ratio measures the proportion of debt financing to equity financing used by a company to finance its assets. It is a leverage ratio that shows the amount of financial risk a company has taken on by using more debt financing compared to equity financing. Return on equity is a profitability ratio, dividends yield is an income ratio, and payables turnover is an efficiency ratio.

Which of the Following Is a Leverage Ratio