1 Answer
Debt cover is defined as the ratio of a company’s total assets to its debt.
Advantages:
Debt cover is a useful measure of financial strength. It can indicate not only what the debt cover was at a particular point in time, but also how much it has changed since it was last evaluated. It is thus a way of assessing a company’s financial quality and associated risk levels.
Disadvantages:
Debt cover should never be used as the sole metric test of a company’s financial soundness. Only if you have access to the current books can you know if there are otherwise unknown changes in a company’s financial situation. Use other metrics in conjunction, such as the interest coverage ratio, to gain a fuller picture.
Advantages:
Debt cover is a useful measure of financial strength. It can indicate not only what the debt cover was at a particular point in time, but also how much it has changed since it was last evaluated. It is thus a way of assessing a company’s financial quality and associated risk levels.
Disadvantages:
Debt cover should never be used as the sole metric test of a company’s financial soundness. Only if you have access to the current books can you know if there are otherwise unknown changes in a company’s financial situation. Use other metrics in conjunction, such as the interest coverage ratio, to gain a fuller picture.
14 years ago. Rating: 0 | |
Top contributors in Credit category
Unanswered Questions
hi88meme
Answers: 0
Views: 6
Rating: 0
Km1888B - Link trang chủ Km1888B chính thức, nạp rút siêu tốc
Answers: 0
Views: 7
Rating: 0
Lăng Mộ Đá Nguyên khối
Answers: 0
Views: 5
Rating: 0
xasa
Answers: 0
Views: 5
Rating: 0
sangathokimy
Answers: 0
Views: 6
Rating: 0
mm99black
Answers: 0
Views: 6
Rating: 0
d79betbet
Answers: 0
Views: 6
Rating: 0
888fshopcom
> More questions...
Answers: 0
Views: 7
Rating: 0