You also notice that Company B seems to have a lot of debt, and wonder if they will have trouble making their interest payments. Which ratio most directly addresses the issue of whether a company will be able to cover its interest payments?

Select which one:

A. Days inventory or inventory turns

B. Days payable

C. Profit margin

D. Operating profit margin

E. Total assets turnover ratio

F. Return on equity

G.Market-to-book ratio

H. Days sales outstanding

I. Current

J. PE (Price to Equity)

K. Total debt

L. Debt-to-equity

M. TIE (Times Interest Earned)