Daily rate and Financial stability ratio: Difference between pages

Revision as of 19:15, 3 February 2019

Financial ratio analysis.

Financial stability ratios are designed to measure the ability of a business to meet its financial obligations in the medium and longer term.

Examples include Gearing, the Debt ratio and Interest cover.

Also known as Long-term solvency ratios.

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-The daily rate of interest (or yield) is a quoting convention for the simple interest ''nominal annual rate'' for compounding once per day.
+''Financial ratio analysis.''
+Financial stability ratios are designed to measure the ability of a business to meet its financial obligations in the medium and longer term.
-'''Example'''
+Examples include Gearing, the Debt ratio and Interest cover.
-The quoted daily rate is 5.11%.
-The amount of interest compounded daily is:
+Also known as Long-term solvency ratios.
-.11% / 365
-= 0.014%.
-Not to be confused with the ''annual effective'' rate, which in this case would be:
-.00014<sup>365</sup> - 1
-= 5.24%.
 == See also ==
-* [[Annual effective rate]]
+* [[Current ratio]]
-* [[Compounding effect]]
+* [[Debt ratio]]
-* [[Nominal annual rate]]
+* [[Gearing]]
-* [[Periodic rate of interest]]
+* [[Interest cover]]
+* [[Liquidity]]
+* [[Liquidity Coverage Ratio]]
+* [[Liquidity ratio]]
+* [[Quick ratio]]
-[[Category:Manage_risks]]
+[[Category:Accounting,_tax_and_regulation]]
+[[Category:The_business_context]]