Solvency Ratios include:
A. Debt-Equity Ratio
B. Current Ratio
C. Debt to capital employed Ratio
D. Gross Profit Ratio
E. Return on capital employed
Choose the correct answer from the options given below:
This question was previously asked in
Shift 02/06/2023 3:30 PM - 6:30 PM
A
A and C only
B
A and E only
C
B and D only
D
A, B and D only
Correct Answer
A and C only
Detailed Explanation
The solvency ratios in your list are:
A. Debt-Equity Ratio
C. Debt to Capital Employed Ratio
The other ratios are not typically considered solvency ratios:
B. Current Ratio is a liquidity ratio.
D. Gross Profit Ratio is a profitability ratio.
E. Return on Capital Employed is also a profitability ratio.
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