Asked by Katherine Erickson on Jul 16, 2024
Verified
Debt to total assets is an example of what type of ratio?
A) Liquidity
B) Asset Management
C) Debt Management
D) Profitability
Debt to Total Assets
A financial ratio that measures the percentage of a company's assets financed through debt.
Liquidity
The measure of how easily an asset can be converted into cash without affecting its market price.
Asset Management
The process of developing, operating, maintaining, and selling assets in a cost-effective manner.
- Gain proficiency in understanding and calculating different financial ratios related to the administration of debt.
Verified Answer
GS
Gjulia ScadutoJul 19, 2024
Final Answer :
C
Explanation :
Debt to total assets is a measure of a company's financial leverage, indicating the proportion of a company's assets that are financed through debt. It falls under the category of debt management ratios, which assess a firm's ability to manage its debt levels.
Learning Objectives
- Gain proficiency in understanding and calculating different financial ratios related to the administration of debt.
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