Which of the following ratio is also termed as leverage ratio?
Debt equity ratio
The correct answer is option 1. The debt equity ratio is also called the leverage ratio as it measures the financial leverage of a company, indicating the proportion of debt used in financing the company's assets relative to shareholders' equity.
Important Questions from Ratio analysis
Which ratios are calculated for measuring the efficiency of operation of business based on effective utilisation of resources?
Which of the following formulae is INCORRECT?
Interest Coverage Ratio and proprietary ratio comes under:
Consider the below mentioned statements and state the correct code of the statements being true or false.
Statement (I): A debt-equity ratio of 2 : 1 indicates that for every 1 unit of equity, the company has raised 2 units of debt.
Statement (II): The cost of floating an equity issue is lesser than the cost of floating a debt
Code:
Debt Service Coverage Ratio indicates which one of the following?
