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When lenders evaluate a company with high operating leverage, they prefer a low long-term debt to capital ratio because this indicates a more prudent and manageable level of long-term debt relative to the company's overall capital structure. High operating leverage means that the company has a higher proportion of fixed costs in its cost structure, which can amplify both profits and losses as sales fluctuate.

In this context, a low long-term debt to capital ratio suggests that the company is relying less on debt financing for its long-term needs, thus minimizing the financial risk associated with its higher fixed costs. This is particularly important for companies with high operating leverage, as they may struggle to cover their interest obligations during downturns in sales or periods of lower revenue. Lenders look for companies that maintain a balanced approach to leverage, allowing them to remain financially healthy even when faced with variability in cash flows.

The other indicators may not reflect the same level of financial prudence or risk management. A high total liabilities to total assets ratio, for example, could signal an excessive reliance on debt, while a high debt to tangible net worth ratio would imply a heavy debt burden relative to the company's tangible assets, heightening risk concerns. Likewise, a low times interest earned ratio would indicate that a company has less capability