Finance Leverage Ratio

Total Debts to Assets: Provides information about the company’s ability to absorb asset reductions arising from losses without jeopardizing the interest of creditors. Formula: Total Liabilities Total Assets Capitalization Ratio: Indicates long-term debt usage. Formula: Long-Term Debt Long-Term Debt + Owners’ Equity Debt to Equity: Indicates how well creditors are protected in case of the […]

Ratio Analysis

Ratio analysis is the quantitative analysis of financial information from a company’s financial statements or share price. Ratios are key to financial analysis, as they provide input for evaluating and comparing a company to its peers, or to an industry benchmark. Ratios provide the vital signs used to measure corporate health, allowing investors to drill down […]