Which of the following is considered a leverage ratio?
A) Debt ratio
B) Return on assets
C) Profit margin on sales
D) Conversion ratio
E) Inventory turnover

Question

Quizplus · Accepted Answer

A leverage ratio is a financial ratio that measures how much of a company's capital comes from debt. The debt ratio compares a company's total debt to its total assets and is considered a popular leverage ratio. B) Return on assets, C) Profit margin on sales, D) Conversion ratio, and E) Inventory turnover are not considered leverage ratios.

Which of the Following Is Considered a Leverage Ratio