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Debt management ratios measure a company's mix of debt and equity financing.
Debt Management Ratios
Financial metrics used to assess a company's ability to manage and pay off its debt obligations.
Debt Financing
Involves borrowing funds from external sources to finance business operations or expand capital, typically through loans or issuing bonds.
Equity Financing
Equity financing is the process of raising capital through the sale of shares in an entity, giving investors ownership interests in the company.
- Comprehend the elements and analysis of debt management ratios.
- Analyze the effect of financial ratios on the strategic decisions and performance metrics of a business.
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Learning Objectives
- Comprehend the elements and analysis of debt management ratios.
- Analyze the effect of financial ratios on the strategic decisions and performance metrics of a business.
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