Comprehensive software for monitoring and evaluation of the economic situation of the enterprise and early warningTry it for free

Long-term solvency ratio based on debt coverage

Method of calculation

Ratio's description

This ratio allows to assess the level of current assets financing with the use of company's foreign capital (debt) and it complements the conclusions drawn from the analysis of long-term solvency ratio based on equity coverage (it does not require additional interpretation, but is necessary to calculate the Synthetic ratio of financial stability).

enenpl
Login to business version Login to edu version Register in business version Register in edu version

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you are happy with it.OK