Practicing Success
ABC Ltd., a telecom company was passing through a bad phase of business cycle and banks were unwilling to lend further amount. It decided to do introspection and compiled following information for the purposes of analysis:
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What is indicated by the total assets to debt ratio? |
Margin of safety to debtors Margin of safety to short term creditors Margin of safety to long-term creditors All of these |
Margin of safety to long-term creditors |
Total Assets to Debt Ratio : This ratio measures the extent of the coverage of long-term debts by assets. |