The Leverage Ratios
Study of The Financial Ratios: The Leverage Ratios
The leverage ratios, which are also called liquidity ratios or gearing ratios, show how well a company can run its day-to-day business over the long term. The amount of debt a company uses to fund its growth is shown by leverage rates. Don't forget that the business needs to pay its bills and other responsibilities in order to stay in business. Solvency rates help us figure out how long a company can stay in business and meet its obligations.
We will be looking into the following leverage ratios:
- Interest Coverage Ratio
- Debt to Equity Ratio
- Debt to Asset Ratio
- Financial Leverage Ratio
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Table of Contents: Study of The Financial Ratios 1. Introduction of the Financial Ratios |
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