Which of the following ratios is best used to assess a company's ability to meet its long- term debt obligations?
A) Debt to equity.
B) Return on common equity.
C) Quick ratio.
D) Current ratio.

Question

Quizplus · Accepted Answer

The debt to equity ratio is best used to assess a company's ability to meet its long-term debt obligations as it compares the company's total liabilities to its shareholder equity, providing insight into the company's leverage and financial health in terms of long-term debt management.

Which of the Following Ratios Is Best Used to Assess