What is a long-term debt ratio?

Answer The long-term debt ratio, is a financial ratio that quickly notes the amount of long-term debt related to the amount of cash on hand, including preferred and common stock. A higher long-term debt r... Read More »

Top Q&A For: What is a long-term debt ratio

The Differences Between Interest Coverage Ratio and Fixed Assets to a Long-Term Liabilities Ratio?

The interest coverage ratio and the fixed assets to long-term liabilities ratio are two completely different types of metrics. Managers use both ratios to gauge the status and performance of distin... Read More »

What is long-term debt?

Long-term debt is any liability that is due in over one year. Short-term debt is any liability that is due in less than one year.Types of Business FinancingA business usually finances in two ways--... Read More »

What is financial leverage and how is it provided by long-term debt?

The use of financial leverage is a choice made by corporate managers over how to finance their internal operations. Proper use of debt and leverage can result in higher profits, but mismanagement c... Read More »

Why do firms use long term debt?

Long-term debt allows a company to raise money in exchange for a promise to pay the money back, plus interest. While long-term debt creates an interest expense, it also provides firms with capital ... Read More »