A company's ability to pay its loans would be captured in the Quick Ratio. The Quick Ratio or acid test measures the company's ability to pay its short-term liabilities by taking into consideration the most liquid assets of the company. On the other hand, debt ratio expresses the company's total liabilities as a percentage of its total assets. The debt to equity ratio as the name implies, takes the ratio between the company's total liabilities and the shareholders' equity. The times interest earned ratio or the interest coverage ratio is a measure of the amount of income that can be used to pay interest expenses in the future.