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Capital Structure and Solvency- Analysis and Ratios

Capital structure is kind of financial foundation of a business. A strong foundation helps it weather hard times. A weak one can cause, precipitate, aggravate and/or prolong them or make the business go under.

Listed alongside are many useful analysis and ratios that indicate the strength of balance sheets of all the listed companies in our database. They help you assess listed companies' capital structure and solvency.

The ratios and graphs are simple-to-understand and at the same time, quite useful in understanding:

  • the level of indebtedness as measured by long-term and total debt as a proportion of other components of financial statements- balance sheet and income statement or profit & loss account- of listed companies; and
  • the ability to service those debt or honor obligations (i.e. timely repayment of interest and principal) emanating from them as measured by debt and/or interest as a proportion of components like EBITDA, EBIT in the income statement of listed companies