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…...

To get access, please buy CA Interview Question Bank
Scroll to Top