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  • 12-01-2022
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What is a solvency ratio?

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emb58 emb58
  • 12-01-2022

Answer:

A solvency ratio measures how well a company's cash flow can cover its long-term debt. Solvency ratios are a key metric for assessing the financial health of a company and can be used to determine the likelihood that a company will default on its debt.

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