The debt ratio of a company is an example of a _____.
A) turnover ratio
B) liquidity ratio
C) profitability ratio
D) leverage ratio

Question

Quizplus · Accepted Answer

The debt ratio is a leverage ratio that measures the extent to which a company is using debt to finance its operations. It is calculated by dividing the total liabilities of a company by its total assets. A higher debt ratio indicates that a company is using more debt to finance its operations, which can increase its financial risk.

The Debt Ratio of a Company Is an Example of a _____