Analyzing financial information is a critical part of being a business owner. One of the ways to monitor the financial performance of your company is through ratios. Using ratios is a quick way for ...

Debt coverage ratio shows a company's ability to pay its debts. The debt coverage ratio compares the cash flow the company has to the total amount of debt the company must still repay. A debt coverage ...

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Interest coverage ratio is a measure that assesses a company's ability to manage the cost of its debt. Both investors and bank lenders use the interest coverage ratio to assess a company's financial ...

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Debt service coverage ratio (DSCR) is calculated by dividing your business’s total debt obligations by its net operating income. Many, or all, of the products featured on this page are from our ...

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

Balance sheets illustrate a company's financial stability via assets and liabilities. The acid-test ratio measures liquidity, with values over 1 indicating strong liquidity. High acid-test ratios ...

ICR measures if a company can cover its debt interest; calculate by dividing EBIT by interest expense. An ICR under 1.0 signals financial trouble; analysts prefer a minimum ICR of 2.0. For investing, ...