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Cairee Moghalu
on Nov 15, 2024

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Which of the following is considered a debt management ratio?

A) Debt to total assets
B) Debt to stockholders' equity
C) Times interest earned
D) All of the above are correct.

Debt Management Ratio

Financial ratios that evaluate a company's ability to manage its long-term debts, including measurements like debt to equity and interest coverage ratio.

Debt to Total Assets

A financial ratio indicating the percentage of a company's assets financed by creditors as opposed to equity.

Times Interest Earned

A financial ratio that measures a company’s ability to meet its interest payments based on its earnings before interest and taxes.

  • Understand the components and interpretation of debt management ratios.
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Haitham AlshabibiNov 18, 2024
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