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Long-term lenders are primarily interested in ratios that assess a borrower's ability to repay debt over time. Key ratios include the debt-to-equity ratio, which indicates the proportion of debt relative to shareholders' equity, and the interest coverage ratio, which measures the ability to meet interest payments with earnings before interest and taxes (EBIT). Additionally, the current ratio and quick ratio provide insights into short-term liquidity, while the debt service coverage ratio evaluates the cash flow available to cover debt obligations. These ratios help lenders assess the overall financial health and risk associated with lending to a borrower.
What else can I help you with?
What are ratios that name the same amount?
your answer simular ratios
What does it mean if the cross products of two ratios are not equal?
The ratios are not equal.
what ratios can you use to determine whether the relationship is proportional?
look at the ratios and multiply
What are two equivalent ratios for 2 to 11?
what are two equivlent ratios for 2:11
What two ratios measure factors that affect profitability?
what tw ratios measure factors
If you divide users of ratios into short term lenders long term lenders and stockholders which ratios would each group be most interested in?
free cashflow
What do lenders do?
As their name suggests, lenders lend money to their customers. This money is then paid back with interested added to it.
What ratios are stockholders interested in?
# The current ratio # return on equity # dividend rate # Gross Margin # Net income margin # qurterly and annual growth ratios
Who uses solvency ratios?
Solvency ratios are primarily used by creditors and investors to assess a company's long-term financial stability and ability to meet its debt obligations. Lenders, such as banks and bondholders, analyze these ratios to evaluate the risk of default before extending credit. Additionally, management and financial analysts utilize solvency ratios to make informed decisions about capital structure and financial strategy. Finally, regulatory bodies may also review these ratios to ensure compliance with financial standards.
What is the origin of melanoma?
It is cancer of the skin and it can come from longterm overexposure to the sun without sunscreen or people can get it from longterm use of tanning beds.
Dividing users of ratios into short term lenders long term lenders and stockholders which ratios would each group be most interest in and for what reasons?
1 because short-termlenders liquidityconcern is with the firm'sability to pay short-termobligations as they come due.2 becauseLong-termlenders--leverageratiosare concerned with the relationship of debt to total assets.Long-termlenders--leverageratios will examine profitability to insure that interest payments can be made.3.becauseStockholders--profitabilityratios, with secondary consideration given to debt utilization, liquidity, and other ratios. Since stockholders are the ultimate owners of the firm, they are primarily concerned with profits or the return on their investment.
How do you cope with longterm unemployment?
find a job
What longterm ideas are being overthrown?
The cause
What longterm stores energy in humans?
lipids
Can you apply for a mortgage if you work 16 hours a week and get?
Money lenders are mainly interested in your ability to repay the loan. The hours or type of work is not of primary interest.
What are equivlent ratios?
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
What is endplate sclerosis?
what is the longterm affects of endplate sclerosis
