The area of financial ratios used to analyze a firm's ability to take risks and potential losses is

Name: The area of financial ratios used to analyze a firm's ability to take risks and potential losses is
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Solvency ratios are used to analyze a firm's ability to take on risks and potential losses by measuring its capacity to meet long-term obligations. These ratios provide insight into the financial stability and health of a company, indicating whether it can sustain operations over the long term.

The Area of Financial Ratios Used to Analyze a Firm's