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    Question

    Capital gearing ratio is?

    A Market test ratio Correct Answer Incorrect Answer
    B Long-term solvency ratio Correct Answer Incorrect Answer
    C Liquid ratio Correct Answer Incorrect Answer
    D Turnover ratio Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The capital gearing ratio is a financial metric that assesses the long-term solvency or financial risk of a company. It measures the proportion of debt and equity in a company's capital structure. In other words, it evaluates the extent to which a company's operations are financed by debt compared to equity.

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