The Long-Term Debt to Asset Ratio is a metric that tracks the portion of a company’s total assets that are financed through long term debt. This ratio allows analysts and investors to understand how leveraged a company is. What is the Long Term Debt to Assets Ratio? Understanding the degree in which a company relies
Category: Debt Ratios
Interest Coverage Ratio
The interest coverage ratio is a measure that indicates how many times the business’ Earnings before Interest and Expenses (EBIT) cover the company’s interest expenses. The Interest Coverage Ratio is a debt ratio, as it tracks the business’ capacity to fulfill the interest portion of its financial commitments. What is the Interest Coverage Ratio? Lenders
Debt to Equity Ratio
The debt to equity ratio is a metric that tracks how leveraged a company is by estimating how many dollars of debt it has for each dollar of equity. The Debt to Equity Ratio is employed as a measure of how risky is the current financial structure, as a company with a high degree of