The debt-to-equity ratio is used for which kind of evaluation?
A)Evaluating shares in a company from an investor's perspective
B)The overall profitability of a company
C)The ability of a company to pay its current liabilities
D)The ability of a company to pay its non-current liabilities

Question

Quizplus · Accepted Answer

The debt-to-equity ratio is a measure of a company's financial leverage, indicating the proportion of debt used to finance the company's assets relative to shareholders' equity. It helps evaluate the company's ability to pay its non-current liabilities.

The Debt-To-Equity Ratio Is Used for Which Kind of Evaluation