The debt-equity ratio is a sub-part of __________

Question

RRB Paper · Accepted Answer

The debt-equity ratio is a sub-part of the long-term solvency ratio.

In financial analysis, the Proprietary ratio and debt-equity ratio is a long-term solvency ratio.
It is an important ratio for determining the long-term solvency of the business firm.
The proprietary ratio establishes the relationship between shareholders' funds and to total assets of the firm.
The debt-Equity Ratio is a solvency ratio that shows the relationship between long-term debts and the internal equities of the company.
It is computed to assess the long-term financial soundness of the company.

long-term solvency ratio