The _____,A Debt Utilization Ratio,is a Measure of the Safety

question 83

Multiple Choice

The _____,a debt utilization ratio,is a measure of the safety margin a company has with respect to the interest payments it must make to its creditors.

• A)liquidity ratio
• B)current ratio
• C)profitability ratio
• D)times interest earned ratio
• E)debt to total assets ratio

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Definitions:

Economic Forecasts

Predictions about future economic conditions, including growth rates, inflation, and employment, based on current and historical data.

FA/Sales Ratio

Fixed Assets to Sales Ratio; measures the efficiency of a firm's use of its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits of a company, used for budgeting and strategic planning.

Fixed Assets

Assets that are purchased for long-term use and are not likely to be converted quickly into cash, such as buildings, land, and machinery.