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Subject 5. Uses and Analysis of the Balance Sheet 13;
Solvency ratios measure a company's ability to meet long-term and other obligations.
Long-Term Debt-Equity Ratio is an indicator of the degree of protection available to the creditors in the event of insolvency of a company. <span>Higher debt-equity ratio indicates higher financial risk.
Debt-Equity Ratio includes short-term debt in the numerator.
The total debt inclu
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