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Edit my paragraph When evaluating whether one should provide a long-term loan to Woolworths, solvency and liquidity ratios can be used to evaluate Woolworths ability
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When evaluating whether one should provide a long-term loan to Woolworths, solvency and liquidity ratios can be used to evaluate Woolworths ability to fulfil long term debt obligations. Solvency ratios provide information that long term creditors can use to assess the risk of lending to Woolworths while liquidity ratios measure a companys ability to pay short term debt obligations.
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