Economics · Financial Ratios
In assessing a long-term commercial term loan application, which financial ratio is considered the most critical for evaluating the borrower's repayment capacity?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Return on Equity (ROE)
- 2Inventory Turnover Ratio
- 3Debt Service Coverage Ratio (DSCR)✓
- 4Current Ratio
Correct answer
Debt Service Coverage Ratio (DSCR)
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