- Current Assets to Total Debt
- Stockholders' Equity Ratio
- Total Debt to Net Worth
Current Assets / (Current + Long Term Debt) = Current Assets to Total Debt Ratio
Stockholders' Equity Ratio - approximates the financial strength of liquidity. A low ratio points to trouble, while a high ratio suggests you will have less difficulty meeting fixed interest charges and maturing debt obligations.
Stockholders' Equity / Total Assets = Stockholders' Equity Ratio
Total Debt to Net Worth - A business's total liabilities should not exceed its tangible net worth. If it does, creditors assume more risk than shareholders. A business handicapped with heavy interest charges will likely lose out to its better financed competitors.
(Current + Deferred Debt) / Tangible Net Worth = Total Debt to net Worth Ratio
Read more about ratios at:
Financial Metrics - Ratio Analysis Considerations