Which of the following ratios measures a firm’s financial risk?

(d)

Leverage ratio’s indicate the firms financial risk. (a) Profitability ratios provide a firms overall economic performance (b) Liquidity ratios measure a firm’s capacity to meet its short-term financial obligations. (c) Activity ratios reflects a firm’s efficiency in resource utilization.

It's the leverage ratio as it is one of several financial measurements that look at how much capital comes in the form of debt (loans), or assesses the ability of a company to meet financial obligations.

Leverage is the correct answer

Agree with Mr. Vinod answer

Answer (d) is correct answer, definitly.

answer D _______________________

answer D ,

 

leverage is the answer

 

Correct answer is leverage

 (d) >>>>>>>>>>>>>>Leverage

I choose option       D

Thank you

Agree with Nancy  Refai.....Thank you for the invitation.