Which statement accurately contrasts the debt to equity ratio with the debt ratio?

• A. Debt to equity ratio measures liquidity, while debt ratio measures profitability.
• B. Debt to equity ratio is calculated using revenue, while debt ratio uses expenses.
• C. Debt to equity ratio focuses on equity, while debt ratio focuses on assets.
• D. Debt to equity ratio is used for tax purposes, while debt ratio is used for investment analysis.

Answer: (C)