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Solvency ratio. This ratio not only shows the ability to pay current debt but also can tell a company when to seek credit. The time
Solvency ratio. This ratio not only shows the ability to pay current debt but also can tell a company when to seek credit. The time to get credit is not when you are in debt as most banks will not give you a credit line when you are debt. The opportunity to get a high level of credit is when you have no debt. Do you think that the current ratio can be used for this analysis as well?
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