what are solvency ratios used for?
445428
What Is the Solvency Ratio? The solvency ratio is a key metric used to measure an enterprise's ability to meet its debt obligations and is used often by prospective business lenders. The solvency ratio indicates whether a company's cash flow is sufficient to meet its short-and long-term liabilities.
649827
The fixed asset turnover ratio is an efficiency ratio that measures how well a company uses its fixed assets to generate sales. It is calculated by dividing net sales by the net of its property, plant, and equipment.
578985
Current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities.
194308
The cash flow-to-debt ratio is the ratio of a company's cash flow from operations to its total debt. ... Cash flow is used rather than earnings because cash flow provides a better estimate of a company's ability to pay its obligations.
65366
The times interest earned (TIE) ratio is a measure of a company's ability to meet its debt obligations based on its current income. The formula for a company's TIE number is earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debt.
904499
Long Term Debt to Total Asset Ratio is the ratio that represents the financial position of the company and the company's ability to meet all its financial requirements. It shows the percentage of a company's assets that are financed with loans and other financial obligations that last over a year.
52969
The accounts receivable turnover ratio is an accounting measure used to quantify a company's effectiveness in collecting its receivables or money owed by clients. The ratio shows how well a company uses and manages the credit it extends to customers and how quickly that short-term debt is collected or is paid.
836164
The P/E ratio measures the relationship between a company's stock price and its earnings per share of stock issued. The P/E ratio is calculated by dividing a company's current stock price by its earnings per share (EPS).
751010
The Loan to Value ratio (LVR) is the amount of your loan compared to the value of your property. LVR is calculated by dividing the amount of the loan by the value of the property. For example, if the property is worth $250,000 and you have a deposit of $50,000, the LVR will be 80%.
1461248
The Cash Conversion Ratio (CCR), also known as cash conversion rate, is a financial management tool used to determine the ratio of the cash flowsStatement of Cash FlowsThe Statement of Cash Flows (also referred to as the cash flow statement) is one of the three key financial statements that report the cash generated ...
864089
Receivable Turnover Ratio or Debtor's Turnover Ratio is an accounting measure used to measure how effective a company is in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.
865059
If a current ratio is less than 1, the current liabilities exceed the current assets and the working capital is negative. ... The amount of a company's working capital changes over time as a result of different operational situations. Thus, working capital can serve as an indicator of how a company is operating.
368997
Solvency ratios measure the ability of a company to pay its long-term liabilities, such as debt and the interest on that debt. It's one of many financial ratios that can be used to assess the overall health of a company.
1039447
Liquidity ratios help shareholders determine how well a company handles its cash flow and short-term debts without needing to raise any extra capital from external sources, such as a debt offering.
1126765
From Wikipedia, the free encyclopedia. The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage.
1231604
A ratio calculated by dividing a company's cash and marketable securities by its current liabilities. It demonstrates the company's ability to satisfy short-term financial obligations.
52864
The receivables turnover ratio measures the efficiency with which a company collects on their receivables or the credit it had extended to its customers. The ratio also measures how many times a company's receivables are converted to cash in a period.