Debt-equity ratio
Operating ratio
Stock ratio
Current ratio
Answer is Wrong!
Answer is Right!
The correct answer is A. Debt-equity ratio.
A leverage ratio is a measure of a company’s financial leverage, which is the extent to which a company uses debt to finance its assets. The debt-equity ratio is calculated by dividing a company’s total debt by its total equity. A higher
debt-equity ratio indicates that a company is more leveraged, and therefore has more risk.The operating ratio is a measure of a company’s profitability, and is calculated by dividing a company’s operating expenses by its revenue. A lower operating ratio indicates that a company is more profitable.
The stock
ratio is a measure of a company’s liquidity, and is calculated by dividing a company’s current assets by its current liabilities. A higher stock ratio indicates that a company is more liquid, and therefore has more ability to pay its short-term debts.I hope this helps!