Practicing Success
Which of the following is not a solvency ratio? |
Debt Equity Ratio Proprietary Ratio Return on Investment Interest Coverage ratio |
Return on Investment |
Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. The other 3 options are examples of Solvency Ratio. The following ratios are normally computed for evaluating solvency of the business. 1. Debt-Equity Ratio; 2. Debt to Capital Employed Ratio; 3. Proprietary Ratio; 4. Total Assets to Debt Ratio; 5. Interest Coverage Ratio. |