This is the most stringent liquidity measure since it is Cash and Cash Equivalents / Current Liabilities, which is concerned strictly with cash assets.
Leverage Ratios: Leverage ratios determine whether a company is operating highly leveraged or low leverage.
Debt-to-Equity Ratio: Computed as Total Debt / Total Equity, the ratio indicates the amount of debt in relation to the equity possessed by the shareholders of that company, and shows what extent the company relies upon debt financing.
This is the most stringent liquidity measure since it is Cash and Cash Equivalents / Current Liabilities, which is concerned strictly with cash assets.
Leverage Ratios: Leverage ratios determine whether a company is operating highly leveraged or low leverage.
Debt-to-Equity Ratio: Computed as Total Debt / Total Equity, the ratio indicates the amount of debt in relation to the equity possessed by the shareholders of that company, and shows what extent the company relies upon debt financing.