Before you jump into any investment, it's important to determine if a company can maintain its liquidity and remain solvent over time. Liquidity and solvency ratios work together, but they shouldn't ...

Solvency ratios assess a company's debt repayment capability by comparing debt to assets and equity. Different solvency ratios, such as debt-to-assets and debt-to-equity, provide insights across time ...

The measures of a company's success go beyond the hard cash it generates as reflected in corporate dividends. Business success also is gauged by the likelihood that the level of the dividends will ...

Ratio analysis is a time-tested method for evaluating business productivity. Ratios are crucial to a small-business owner both in comparing current to past internal performance and in comparing the ...

If you’re a business owner looking for a loan, your lender will be looking for your solvency ratio. Of course, if you have a startup and are new to running a business, you may not know what a solvency ...

Solvency is the financial staying power of a business. Business owners tend to think their No. 1 priority is to make a profit. That end, however, can lead to using some particularly short term-minded ...

Business owners tend to think their No. 1 priority is to make a profit. That end, however, can lead to using some particularly short term-minded means, such as using large amounts of debt to grow ...

Companies prefer raising funds through debt capital as it is cost-effective. In this way, they can save themselves from paying high-interest rates if they raise through financial institutions.