标题: Solvency ratio [打印本页] 作者: whaler 时间: 2011-7-11 18:39 标题: Solvency ratio
There are two firms: company A has a higher solvency ratio than company B. the liability to equity ratio and the current ratio of which company is higher, why?作者: dontknow1987 时间: 2011-7-11 18:39
D/E is higher for the company with higher solvency. D/E is a solvency ratio....it shows company's ability to pay l/t debt. current ratio is a liquidity ratio.