Analyze a company's long-term liabilities using the times interest earned, debt-to-equity, and other debt ratios. - Although
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Analyze a company's long-term liabilities using the times interest earned, debt-to-equity, and other debt ratios.
- Although long-term creditors are concerned with a company's short-term liquidity, they are primarily concerned with its long-term solvency.
- As such, long-term creditors focus on ratios that incorporate
- long-term debt and
- interest expense/payments.
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Related Book For
Cornerstones Of Financial Accounting
ISBN: 9780176707125
2nd Canadian Edition
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone
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