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I would think liquidity ratios, cash flow, days in receivables, and inventory turns might be a part of their interests. Lender will check following - 1. Leverage (TOL/TNW & TD/TNW) - irrespective of the tenor/type of loan 2. Liquidity Ratio 3. Liquidity Ratios ( current Ratio, inventory turnover ratio, debtors & creditors turnover ratio) 4. Net Working capital - to assess working capital requirement 5. ISCR- Interest service coverage ratio to check capacity to repay interest (in case of CCor OD) 5 DSCR - Debt Service coverage ratio to check capacity to repay interest+ capital (in case of term loan)
What else can I help you with?
Who would interested in the profitability ratios of a business?
Investors and shareholders are primarily interested in the profitability ratios of a business, as these metrics help assess the company's financial health and potential for returns on their investments. Additionally, creditors and lenders analyze these ratios to evaluate the business's ability to generate sufficient profits to meet debt obligations. Management may also use profitability ratios to make informed strategic decisions and improve operational efficiency.
What do lenders do?
As their name suggests, lenders lend money to their customers. This money is then paid back with interested added to it.
What ratios are stockholders interested in?
# The current ratio # return on equity # dividend rate # Gross Margin # Net income margin # qurterly and annual growth ratios
Short term financing method?
Basically we have two financial methods,namely shortterm and longterm. Shortterm financing refers to fund short term fund requirements of an org.and vice versa.
Difference between pooling of risk in shortterm and longterm insurance?
terms period
If you divide users of ratios into short term lenders long term lenders and stockholders which ratios would each group be most interested in?
free cashflow
If you divide users of profitability asset utilization liquidity and debt utilization ratios into short-term lenders long-term lenders and stockholders which ratios would each group be interested in?
Short-term lenders would be primarily interested in liquidity ratios, such as the current ratio and quick ratio, as these indicate the company's ability to meet its short-term obligations. Long-term lenders would focus on debt utilization ratios, such as debt-to-equity and interest coverage ratios, to assess the company's long-term financial risk and capacity to repay debt. Stockholders would be more concerned with profitability ratios, like return on equity and profit margin, as these reflect the company's ability to generate returns on their investments. Asset utilization ratios may also be of interest to all groups, but their primary focus tends to vary based on the specific financial interests of each group.
Who would interested in the profitability ratios of a business?
Investors and shareholders are primarily interested in the profitability ratios of a business, as these metrics help assess the company's financial health and potential for returns on their investments. Additionally, creditors and lenders analyze these ratios to evaluate the business's ability to generate sufficient profits to meet debt obligations. Management may also use profitability ratios to make informed strategic decisions and improve operational efficiency.
What ratios are long-term lenders interested in?
Long-term lenders are primarily interested in ratios that assess a borrower's ability to repay debt over time. Key ratios include the debt-to-equity ratio, which indicates the proportion of debt relative to shareholders' equity, and the interest coverage ratio, which measures the ability to meet interest payments with earnings before interest and taxes (EBIT). Additionally, the current ratio and quick ratio provide insights into short-term liquidity, while the debt service coverage ratio evaluates the cash flow available to cover debt obligations. These ratios help lenders assess the overall financial health and risk associated with lending to a borrower.
What do lenders do?
As their name suggests, lenders lend money to their customers. This money is then paid back with interested added to it.
What ratios are stockholders interested in?
# The current ratio # return on equity # dividend rate # Gross Margin # Net income margin # qurterly and annual growth ratios
Short term financing method?
Basically we have two financial methods,namely shortterm and longterm. Shortterm financing refers to fund short term fund requirements of an org.and vice versa.
When you try to remember a series of digits you are using?
Shortterm memory
Difference between pooling of risk in shortterm and longterm insurance?
terms period
What ratios do you think banks are most interested in for young company?
Banks are typically most interested in liquidity ratios, such as the current ratio and quick ratio, to assess a young company's ability to meet short-term obligations. They also focus on leverage ratios, like the debt-to-equity ratio, to evaluate financial stability and risk. Additionally, profitability ratios, such as net profit margin, can provide insights into the company's potential for sustainable growth. Overall, these ratios help banks gauge the financial health and viability of startups seeking funding.
Who uses solvency ratios?
Solvency ratios are primarily used by creditors and investors to assess a company's long-term financial stability and ability to meet its debt obligations. Lenders, such as banks and bondholders, analyze these ratios to evaluate the risk of default before extending credit. Additionally, management and financial analysts utilize solvency ratios to make informed decisions about capital structure and financial strategy. Finally, regulatory bodies may also review these ratios to ensure compliance with financial standards.
What is the most likely option an individual might research if saving for a shortterm goal?
KG
