A ratio which estimates the risk associated with investing in a business firm is called: solvency ratio.
Solvency ratio can be defined as a key metric that is typically used to measure the ability of a business firm to meet its long-termdebt obligations.
Basically, a solvency ratio measures the financial position of a business firm and the extent to which its assets cover long-termdebt obligations (commitments), especially for future payments and the liabilities.
In conclusion, a ratio which estimates the risk associated with investing in a business firm is called solvency ratio.
