Long-term solvency ratio and Reputational risk: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create page. Source: Investopedia https://www.investopedia.com/ask/answers/040115/what-are-differences-between-solvency-ratios-and-liquidity-ratios.asp)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
''Financial ratio analysis.''
1. ''Risk identification and management.''


Long-term solvency ratios are designed to measure the ability of a business to meet its financial obligations in the medium and longer term.
The risk of adverse consequences arising from a worsening of the reputation of a business or other organisation.


Examples include Gearing, the Debt ratio and Interest cover.
For example, as a result of adverse publicity.




Also known as Financial stability ratios.
2. ''Costs.''


The risk of incurring costs, or limiting the flexibility of commercial actions, because of the need to protect the reputation of the business from damage.


== See also ==
 
* [[Current ratio]]
 
* [[Debt ratio]]
==See also==
* [[Gearing]]
*[[Compliance risk]]
* [[Interest cover]]
*[[Ethics]]
* [[Liquidity]]
* [[Financial risk]]
* [[Liquidity Coverage Ratio]]
*[[Franchise viability risk]]
* [[Liquidity ratio]]
*[[Media risk]]
* [[Quick ratio]]
*[[Operational risk]]
*[[Risk management]]
*[[Run]]
*[[Sustainability]]
*[[Working capital management]]
 
[[Category:Financial_risk_management]]

Revision as of 21:50, 5 June 2021

1. Risk identification and management.

The risk of adverse consequences arising from a worsening of the reputation of a business or other organisation.

For example, as a result of adverse publicity.


2. Costs.

The risk of incurring costs, or limiting the flexibility of commercial actions, because of the need to protect the reputation of the business from damage.


See also