Which of the following is an example of a leverage ratio?

The debt-to-owners equity ratio is a prime example of a leverage ratio because it measures the extent to which a company is using borrowed funds (debt) in relation to the owners' equity. This ratio provides insight into the financial structure of a company and indicates the level of financial risk associated with using debt to finance its operations and growth.

Leverage ratios, like the debt-to-owners equity ratio, are crucial for investors and creditors, as they help assess a company's ability to meet long-term obligations and the potential return on an investment compared to the risks involved. High leverage may suggest that a company is taking on a lot of debt compared to equity, which can enhance returns during good performance but also increases risk during downturns.

In contrast, the other options relate to different aspects of a company's financial health. The current ratio and quick ratio are liquidity ratios that focus on a company's ability to meet short-term obligations. Return on equity measures profitability in relation to shareholders' equity, rather than the use of debt versus equity.