What do the Debt management ratios reveal?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What do the Debt management ratios reveal?
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Step 1: Definition
Debt management ratio:
Debt management ratio reveals the firm’s ability to repay the long term debts by indicating the percentage of company’s asset that is provided through debt. Higher the ratio, higher will be the risk for the firm’s operation.
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