When making comparisons between companies in the same industry, a high D/E ratio indicates a heavier reliance on debt. For instance, if Company A has $50,000 in cash and $70,000 in short-term debt, which means that the company is not well placed to settle its debts. The cash ratio provides an estimate of the ability […]
When making comparisons between companies in the same industry, a high D/E ratio indicates a heavier reliance on debt. For instance, if Company A has $50,000 in cash and $70,000 in short-term debt, which means that the company is not well placed to settle its debts. The cash ratio provides an estimate of the ability […]
