A company is always considered a serious credit risk if its Debt-to Assets ratio is high.

Question

Quizplus · Accepted Answer

A high Debt-to-Assets ratio indicates that a company has a significant amount of debt relative to its assets, but it doesn't automatically make the company a serious credit risk. Other factors, such as the company's cash flow, revenue stability, industry position, and the nature of its assets, also play crucial roles in determining its creditworthiness.

A Company Is Always Considered a Serious Credit Risk If