Examlex
Which of the following statements is MOST accurate?
Times-Interest-Earned Ratio
A measure of a company's ability to honor its debt payments, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.
Equity Multiplier
A ratio of financial leverage that calculates the proportion of a company's assets funded by its shareholders' equity.
Total Assets Turnover Ratio
Measures the turnover of all the firm’s assets; it is calculated by dividing sales by total assets.
Debt Ratio
A financial ratio that measures the extent of a company’s or individual's leverage, calculated by dividing total liabilities by total assets.
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