5) Efficiency refers to how productive a company is in using its assets, and is usually measured relative to how much revenue is generated from a certain level of assets. 5) 6) The greater the times interest earned ratio, the lower the risk a company is exposed to. 6) 7) The use of debt is sometimes described as financial leverage because debt can have the effect of increasing the return on equity. 7) 8) Capital structure refers to a company's long-run financial viability and its ability to cover long-term obligations. 8)-- 9) An advantage of common-size statements is that they reflect the dollar magnitude (size) of the different companies under analysis. 9) refers to the availability of resources to meet long-term cash requirements. 10) Liquidity 10)