Long-term solvency is indicated by __________________.

Debt-Equity ratio

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Net Profit ratio

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Current ratio

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Accounting ratio

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Solution

The correct option is A Debt-Equity ratio
Long -term solvency is indicated by Debt-equity ratio. The debt-to-equity (D/E) ratio is calculated by dividing a company's total liabilities by its shareholder equity. These numbers are available on the balance sheet of a company's financial statements.

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Similar questions

A ______ debt-to-equity ratio indicates a lower amount of financing by debt via lenders versus funding through equity via shareholders.

The debt-to-equity ratio is a measure of a firm's ___

Debt-equity ratio is a sub-part of _______.

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