Leverage Ratio- capacity of company to meet its losses

Q.  Which of the following is a financial ratio that gives a measure of a company's ability to meet its financial losses?
- Published on 20 Jul 15

a. Cash Reverse Ratio
b. Leverage Ratio
c. Statutory Liquidity Ratio
d. Loan-to-Value Ratio

ANSWER: Leverage Ratio
 
It is meant to evaluate a company's debt levels.

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