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Long-term bank loans to equity

Method of calculation

Ratio's description

This ratio complements the information provided by the long-term debt to equity ratio, by including the effects of long-term credits and loans.

Ratio's interpretation

  • High values and an increasing trend are assessed negatively and interpreted as a deterioration of company's creditworthiness, because of the growing influence of long-term credits and loans on the level of equity.

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