Ratio analysis is a powerful tool in determining the quality of a firms liabilities. For example, bond

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Ratio analysis is a powerful tool in determining the quality of a firm’s liabilities. For example, bond rating agencies employ ratio analysis in combination with other risk assessment tools to sort companies’ debt into risk categories. Higher risk debt typically carries higher yields. Go to Standard & Poor’s Canada (standardandpoors.com) and click on Ratings Action Press Release. How do financial ratios impact ratings?

Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...

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