Asked by Sukhkaran Dhaliwal on Jun 03, 2024
Verified
Which of the following is not a measure of solvency?
A) Debt-to-equity ratio.
B) Cash coverage ratio.
C) Times interest earned ratio.
D) Earnings per share.
Earnings Per Share
A financial metric that measures the amount of net income earned per share of stock, used to gauge a company's profitability.
- Interpret the impact of transactions and corporate actions on various financial ratios.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
D
Explanation :
Earnings per share is a measure of profitability, not solvency. The debt-to-equity ratio, cash coverage ratio, and times interest earned ratio are all measures of solvency.
Learning Objectives
- Interpret the impact of transactions and corporate actions on various financial ratios.
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