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Solvency ( leverage ) ratios refer to whether a business entity is able to pay its debts as they become due, failing to do so

Solvency (leverage) ratios refer to whether a business entity is able to pay its debts as they become due, failing to do so will result in the business entity being forced into liquidation or winding up by the creditors. Discuss the concept solvency ratio tells us about a company's financial health?

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