This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts by the assets. This ratio is ____.

Current ratio

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Total assets to debt ratio

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Debt equity ratio

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B
Total assets to debt ratio

This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts are covered by assets. This ratio is Total assets to debt ratio.

Suggest Corrections

Similar questions

Q. Which of the following are solvency ratios?
a. Debt equity ratio
b. Total fixed assets to debt ratio
c. Debt ratio
d. Interest coverage ratio

____________ of total assets to debt ratio indicates that assets have been mainly financed by owners funds and the long-term loans are adequately covered by assets.

Q. Debt to total assets of a firm is 0.2. The debt to equity ratio would be _______.

Q. Total Assets ₹ 2,60,000; Total Debts ₹ 1,80,000; Current Liabilities ₹ 20,000. Calculate Debt to Equity Ratio.

Q. Total Assets to Debt Ratio = / Long-term Debts

Join BYJU'S Learning Program

This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts by the assets. This ratio is ____.

The correct option is B Total assets to debt ratio This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts are covered by assets. This ratio is Total assets to debt ratio.

The correct option is B
Total assets to debt ratio

This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts are covered by assets. This ratio is Total assets to debt ratio.