Question
Which of the following ratio is also termed as leverage ratio?
The correct answer is
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.
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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:
Which ratios are calculated for measuring the efficiency of operation of business based on effective utilisation of resources?
Which of the following ratio is also termed as leverage ratio?
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