Leverage Ratios

question 115

Multiple Choice

Leverage ratios

• A) Show the relative amount of funds in the business supplied by creditors and shareholders.
• B) Indicate a company's ability to pay short-term debts.
• C) Indicate management's ability to generate a financial return on sales or investment.
• D) Show the profit margins for the last six months.
• E) Indicate the future profits from the current customer base.

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Definitions:

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