Long-Term Solvency Risk Ratios Flashcards
1
Q
Liabilities to Assets Ratio
A
Total Liabilities / Total Assets
2
Q
Liabilities to Shareholders’ Equity Ratio
A
Total Liabilities / Total Shareholders’ Equity
3
Q
Long-Term Debt to Long-Term Capital Ratio
A
(Long-Term Debt) / (Long-Term Debt + Total Shareholders’ Equity)
4
Q
Long-Term Debt to Shareholders’ Equity Ratio
A
Long-Term Debt / Total Shareholders’ Equity
5
Q
Operating Cash Flow to Total Liabilities Ratio
A
Cash Flow from Operations / Average Total Liabilities
6
Q
Interest Coverage Ratio
A
(NI + Interest Exp + Income Tax Exp + Minority Interest in Earnings) / Interest Expense
