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I would think liquidity ratios, cash flow, days in receivables, and inventory turns might be a part of their interests. Lender will check following - 1. Leverage (TOL/TNW & TD/TNW) - irrespective of the tenor/type of loan 2. Liquidity Ratio 3. Liquidity Ratios ( current Ratio, inventory turnover ratio, debtors & creditors turnover ratio) 4. Net Working capital - to assess working capital requirement 5. ISCR- Interest service coverage ratio to check capacity to repay interest (in case of CCor OD) 5 DSCR - Debt Service coverage ratio to check capacity to repay interest+ capital (in case of term loan)
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What do lenders do?
As their name suggests, lenders lend money to their customers. This money is then paid back with interested added to it.
What ratios are stockholders interested in?
# The current ratio # return on equity # dividend rate # Gross Margin # Net income margin # qurterly and annual growth ratios
Short term financing method?
Basically we have two financial methods,namely shortterm and longterm. Shortterm financing refers to fund short term fund requirements of an org.and vice versa.
Difference between pooling of risk in shortterm and longterm insurance?
terms period
Can you apply for a mortgage if you work 16 hours a week and get?
Money lenders are mainly interested in your ability to repay the loan. The hours or type of work is not of primary interest.
If you divide users of ratios into short term lenders long term lenders and stockholders which ratios would each group be most interested in?
free cashflow
What do lenders do?
As their name suggests, lenders lend money to their customers. This money is then paid back with interested added to it.
What ratios are stockholders interested in?
# The current ratio # return on equity # dividend rate # Gross Margin # Net income margin # qurterly and annual growth ratios
Short term financing method?
Basically we have two financial methods,namely shortterm and longterm. Shortterm financing refers to fund short term fund requirements of an org.and vice versa.
When you try to remember a series of digits you are using?
Shortterm memory
What are the longterm and shortterm effects of shooting up pills?
You could die.
Difference between pooling of risk in shortterm and longterm insurance?
terms period
What is the most likely option an individual might research if saving for a shortterm goal?
KG
Dividing users of ratios into short term lenders long term lenders and stockholders which ratios would each group be most interest in and for what reasons?
1 because short-termlenders liquidityconcern is with the firm'sability to pay short-termobligations as they come due.2 becauseLong-termlenders--leverageratiosare concerned with the relationship of debt to total assets.Long-termlenders--leverageratios will examine profitability to insure that interest payments can be made.3.becauseStockholders--profitabilityratios, with secondary consideration given to debt utilization, liquidity, and other ratios. Since stockholders are the ultimate owners of the firm, they are primarily concerned with profits or the return on their investment.
What are equivlent ratios?
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
Can you apply for a mortgage if you work 16 hours a week and get?
Money lenders are mainly interested in your ability to repay the loan. The hours or type of work is not of primary interest.
How are ratios classified?
Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.
