The Project Gutenberg EBook of McGuffey's First Eclectic Reader, Revised. Edition, by William Holmes McGuffey. This eBook is for the use of anyone anywhere at no cost and with. almost no restrictions whatsoever. You may copy it, give it away or. re-use it under the terms of the Project Gutenberg License included. with this eBook or online at www.gutenberg.net. Title: McGuffey's First Eclectic Reader, Revised Edition.
It is a popular benchmark used in the measurement of an entity's (person or corporation) ability to produce enough cash to cover its debt (including lease) payments. The higher this ratio is, the easier it is to obtain a loan.
A few of these basic solvency ratios are: 1  The Total Debt/Total Assets Ratio, measures how much of the firm's asset base is financed using debt. If a firm's debt ratio is .5, that means for every dollar of debt there are two asset dollars, or, putting it another way, that the firm's equity totals twice its debt.