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The ratio that tests how leveraged an organisation is, may be referred to as:

(a)    Current ratio(b)    Return-on-investment(c)    Debt ratio(d)    Net profit margin(e)    Inventory turnover ratio.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/05/11
Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

I agree the answer for this question with Vinod Jetely

Choice C

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

(c)

R Debt ratio measures the percentage of total assets financed by debt (including current liabilities). So, it tests how leveraged an organisation is.

              Hence, option (c) is correct.

Kamal Ibrahim
by Kamal Ibrahim , Partnership Officer , Episcopal Diocese of Egypt and North Africa

A financial ratio that measures the extent of a company’s or consumer’s leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed in percentage, and can be interpreted as the proportion of a company’s assets that are financed by debt.

Check Reference below on: http://www.investopedia.com/terms/d/debtratio.asp#ixzz3ZpCTtTRn 

Nitin  Firke
by Nitin Firke , MANAGER , IDMC LTD

Inventory turnover ratio or Stock turnover ratio indicates the velocity with which stock of finished goods

is sold i.e. replaced. Generally it is expressed as number of times the average stock has been "turned over" or rotate of during the year.

Paolo Borchetta
by Paolo Borchetta , Managing Director , NIMM International Mauritanie Mining

Total Debt Ratio or Debt Ratio, e.g. C

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