问题如下:
An analyst calculated a ratio using operating cash flow as the numerator and total debt as the denominator .What’s the ratio and what does it measure?
选项:
A.The ratio is debt coverage ratio,measuring a company’s financial risk and financial leverage.
B.The ratio is debt payment ratio,measuring a company’s ability to pay debts with operating cash flows.
C.Debt the ratio is interest coverage raio, measuring a company's ability to pay interest obligations
解释:
A is correct. Debt coverage ratio=CFO/Total debt.It measures financial risk and financial leverage.
financial leverage 不是特指的average total asset/average total equity吗?