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The ability of a firm to satisfy its debt obligations can be assessed using three sets of ratios:

  • Short-term solvency ratios

  • Capitalization (or financial leverage) ratios

  • Coverage ratios.

In addition to these ratios, an analyst should look at the maturity structure of the debt.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M9507075

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