Which credit ratios would you consider when evaluating a borrower’s financial situation?

Leverage ratios link a company’s debt holdings to a particular cash flow indicator, most frequently EBITDA. The financing climate and the industry will have a significant impact on the leverage ratio parameters; nonetheless, the total leverage ratio in an LBO range from 4.0x to 6.0x, with the senior debt ratio normally being around 3.0x. Total…...