Solvency ratios are used to analyze the long-term debt-paying ability and the composition of the financing s

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Solvency ratios are indeed used to analyze the long-term debt-paying ability and the composition of the financing sources. These ratios provide information on a company's ability to meet its long-term debt obligations and help investors and creditors assess the financial risk associated with investing or lending to a company.

Solvency Ratios Are Used to Analyze the Long-Term Debt-Paying Ability