Asked by
Jamie Dunham
on Nov 08, 2024
Verified
Which ratio is not a measure of long-term solvency?
A) Total debt ratio.
B) Price-earnings ratio.
C) Debt/equity ratio.
D) Equity multiplier
E) Times interest earned.
Long-Term Solvency
Measures a company's ability to meet its long-term financial obligations and commitments.
Price-Earnings Ratio
A financial ratio that measures a company's current share price relative to its per-share earnings.
Total Debt Ratio
A measure of a company's financial leverage, calculated by dividing its total liabilities by its total assets.
- Acquire insight into the vital significance of major financial ratios in gauging long-term solvency and the efficiency of operations.
Verified Answer
KA
Learning Objectives
- Acquire insight into the vital significance of major financial ratios in gauging long-term solvency and the efficiency of operations.