Answer (D) is correct . The debt to total assets ratio is the best indicator of long-term debt paying ability. It measures the long-term debt burden carried by the company per dollar of assets.
Answer (A) is incorrect because Working capital turnover is not recognized as a useful ratio.
Answer (B) is incorrect because Asset turnover measures a firm’s efficiency at deploying assets to generate sales revenue.
Answer (C) is incorrect because The current ratio measures a firm’s ability to satisfy short-term, not long-term, debt obligations.
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