Which ratios measure a company's long-term debt paying ability and its financing s

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Solvency ratios are used to analyze a company's long-term debt-paying ability and its financing structure.Creditors are concerned with a company's ability to satisfy outstanding obligations.The larger a company's liability percentage,the greater the risk that the company could fall behind or default on debt payments.Stockholders,too,are concerned about a company's solvency.If a company is unable to pay its debts,the owners could lose their investment.

Which Ratios Measure a Company's Long-Term Debt Paying Ability and Its