The times-covered ratio, which measures the degree to which managers use debt or equity to finance ongoing operations, is a type of
A)current ratio.
B)liquidity ratio.
C)leverage ratio.
D)activity ratio.
E)profit ratio.

Question

Quizplus · Accepted Answer

Leverage ratios, such as the debt-to-assets ratio and the times-covered ratio, measure the degree to which managers use debt or equity to finance ongoing operations.

The Times-Covered Ratio, Which Measures the Degree to Which Managers