Examlex
Which of the following equations correctly represents the data below?
Times Interest Earned
A financial ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes (EBIT).
Debt-To-Equity Ratio
A financial ratio that measures the degree to which a company is financing its operations through debt versus wholly owned funds.
Equity Multiplier
A financial leverage ratio that measures the proportion of a company’s assets that are financed by its shareholders' equity, indicating the level of debt used to finance assets.
Net Profit Margin
A profitability ratio that shows what percentage of sales has turned into profits after all expenses are deducted.
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