Which of the following is a leverage ratio?

A. Debt equity ratio

B. Current ratio

C. Quick ratio

D. Earning power

Answer: Option A

Solution(By Examveda Team)

Debt equity ratio is a leverage ratio. The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage.