Which of the following debt management ratios is the most inclusive for measuring the degree to which a company relies on outsiders for financing?
A)debt-to-equity ratio
B)times interest earned ratio
C)long-term debt-to-equity ratio
D)long-term debt-to-total assets ratio

Question

Quizplus · Accepted Answer

The debt-to-equity ratio is the most inclusive measure among the options for assessing the degree to which a company relies on external financing. It considers all debts (both short-term and long-term) in relation to equity, providing a comprehensive view of the company's leverage.

Which of the Following Debt Management Ratios Is the Most