Ratios can be used to analyze a company's ability to pay long-term debt.

Name: Ratios can be used to analyze a company's ability to pay long-term debt.
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Ratios such as Debt-to-Equity and Interest Coverage ratios can be used to evaluate a company's ability to pay long-term debt. These ratios indicate the company's ability to generate enough profits to cover its interest payments on its debt and the level of debt financing relative to equity financing.

Ratios Can Be Used to Analyze a Company's Ability to Pay