What is an Ideal leverage ratio?

A figure of 0.5 or less is ideal. In other words, no more than half of the company’s assets should be financed by debt. Alternatively, some suggest a 2:1 Debt to Equity structure. However, this strongly depends on case to case. Always try to seek more information before you answer this question. The capacity of…...

To get access, please buy CA Interview Question Bank
Already a member? Log in here
Study Smart: The Ultimate Exam Guide by Yugantar Gupta
Scroll to Top