Category: Solvency Ratios

Times Interest Earned, also known as the interest coverage ratio, is a solvency ratio that compares the operating profit with the interest expense of the current reporting period.

The debt to equity ratio is a solvency ratio that shows the extent to which a company finances its assets with debt or equity.

The debt to assets ratio is a solvency ratio that gives an idea about whether a company finances its assets primarily with debt or equity.

The assets to equity ratio is a solvency ratio that gives an idea about whether a company finances its assets and operations more by issuing debt or equity.