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Question
Debt Ratio can be calculated as ______?
Options
Long-term Debt/Capital Employed (or Net Assets)
Short-term Debt/Capital Employed (or Net Assets)
Capital employed/Long-term Debt
Capital employed/Short-term Debt
MCQ
Fill in the Blanks
Solution
Debt Ratio can be calculated as Long-term Debt/Capital Employed (or Net Assets).
Explanation:
The Debt Ratio is the proportion of long-term debt to total external and internal resources (capital employed or net assets).
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Types of Ratios
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