Which of the following is considered a good/safe rule- of- thumb debt ratio for businesses?
A)1.5 or above
B)1.0 or above
C).6 or below
D).8 or below

Name: Which of the following is considered a good/safe rule- of- thumb debt ratio for businesses? A)1.5 or above B)1.0 or above C).6 or below D).8 or below
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Question

Quizplus · Accepted Answer

A debt ratio of 0.6 or below is generally considered safe, indicating that the company is using a moderate amount of debt relative to its assets.

Which of the Following Is Considered a Good/safe Rule- Of-