Overview
Long-term solvency refers to a company's ability to pay its long-term obligations. Financing ratios provide investors and creditors with an indication of this element of risk.
- Calculate the debt-to-equity ratio for your company at year end. What does this ratio tell you about the risk related to your company?
- Calculate the times interest earned ratio for your company at year end. What does this ratio tell you about the risk related to your company?