Financial ratios that reflect the degree to which a firm relies on borrowed funds are called the ratios.

Financial ratios that reflect the degree to which a firm relies on borrowed funds are called the ratios.

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  1. The answer to this question is the leverage ratios. The leverage ratios are also called equity or debt ratios. Leverage ratios used to measure the company’s ability to meet the financial obligation by looking how much is the capital that comes from company debt or obligation. Also in leverage ratio, it shows if the assets of the company belongs to the shareholders (less leverage) or with the creditors (highly leverage).   

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