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Question

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

A
A, B, and D
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B
A, B, and C
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C
B, C, and D
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D
A, B, C, D
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Solution

The correct option is D A, B, and D
  • Types of Solvency ratios :-
  • Debt-to-Equity. This ratio is a measure of total debt as compared to shareholder equity. ...
  • Total-Debt-to-Total-Assets. This refers to the ratio of long-term and short-term liabilities compared to total holdings. ...
  • Interest-Coverage Ratios.

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