Question

Debt management ratios measure

a. how effectively a company is using its cash.
b. how well a company is using debt versus equity position.
c. a company’s ability to earn profit.
d. a company’s ability to meet payable obligations.

Answer 1

The right answer for the question that is being asked and shown above is that: "b. how well a company is using debt versus equity position." Debt management ratios measure b. how well a company is using debt versus equity position.