CAPITAL STRUCTURE RATIOS - Accounts and Finance for Managers

Capital Structure Ratios Analysis

The capital structure ratios are classified into two categories

  • Leverage Ratios – Long term solvency position of the firm – Principal repayment
  • Coverage Ratios – Fixed commitment charge solvency of the firm – Dividend coverage and Interest coverage

capital structure ratios

Under the capital structure ratios, the composition of the capital structure is analysed only in the angle of long term solvency of the firm.

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