Solvency
A firm's ability to meet long-term obligations — commonly measured by debt-to-equity, debt-to-assets, or interest coverage ratios.
Interest coverage = EBIT / interest expense. Below ~2× is a warning sign; investment-grade issuers typically operate at 4–8×. Credit-rating agencies blend solvency ratios with cash flow measures (FFO/debt, FCF/debt) to derive ratings.
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