Debt and Solvency Ratios
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Debt and Solvency Ratios
Topics
Introduction
Debt Ratio
Debt to Equity Ratio
Equity Ratio
Capitalization Ratio
Cash Flow to Debt
Introduction
Solvency is the ability of a company to meet its long-term financial obligations. This ratio group is concerned with identifying absolute and relative levels of debt, financial leverage, and capital structure.
These ratios allow users to gauge the degree of inherent financial risk, as well as the potential of insolvency. ...
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