Learn various types of solvency ratios used as part of financial ratio analysis. Browse through the below resources.
What is Capital Gearing Ratio? In this resource, we will understand the Gearing ratio, specifically the Capital Gearing ratio. We will learn how to calculate it, know its importance and drawbacks. Also, in the later section, we will compare how different is the ratio for companies in various sectors As part of business operation companies …
What is the Debt to Equity ratio? One of the most widely used Solvency Ratio or Leverage Ratio is the Debt to Equity ratio or DE Ratio. In evaluating stocks for investment, the Debt-Equity ratio is the most prominent financial ratio. It helps in understanding the likelihood of the stock to perform better relative to …
What is the Debt to Asset ratio? As part of Solvency ratio analysis, it becomes very important to understand how the company’s assets are funded. This is when the Debt to Asset ratio comes to the play. Also called as Debt Ratio, it is one of the most used ratio by Investors and Lenders to …
What is the Debt to Capital ratio? While analyzing a company’s Capital Structure, Solvency Ratios are most widely used. Debt to Capital ratio is one such Solvency ratio. This ratio is most often used by Investors and Lenders to evaluate if the company is overburdened with Debt. Debt to Capital ratio Meaning As part of …
What is interest coverage ratio? As part of financial ratios analysis, Solvency ratios play an important role. Interest Coverage Ratio (ICR) being an income statement ratio, indicates if the company has earned sufficient earnings so that it can make interest payments on the borrowings. Interest coverage ratio meaning An interest coverage ratio explains …