Alongside debt-to-assets, the other named solvency ratio compares borr…

Question

Alongside debt-to-assets, the other named solvency ratio compares borrowings with owners' funds. It is:

Accepted Answer

D. Debt-to-equity

1. Owners' funds are the base.
2. Borrowings sit on top.
3. It is debt-to-equity.
_Source: OpenStax Principles of Finance 2e, Chapter 6, Measures of Financial Health._

Answer

Cash-to-sales

Answer

Rent-to-income

Answer

Stock-to-orders

Alongside debt-to-assets, the other named solvency ratio compares borrowings with owners' funds. It is:

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