Table 1

Comprehensive formulas for indebtedness indicators

RatioAlgorithm
Total indebtedness ratioCurrent and non-current liabilities to total assets
Self-financing ratioShareholders funds to total assets
Current indebtedness ratioCurrent liabilities to total assets
Non-current indebtedness ratioNon-current liabilities to total assets
Debt-to-equity ratioCurrent and non-current liabilities to shareholders funds
Interest coverage ratioEarnings before interest and taxes to interests paid
Interest burden ratioInterests paid to earnings before interest and taxes
Debt-to-cash flow ratioCurrent and no-current liabilities to cash flow
Financial independence ratioShareholders funds to current and non-current liabilities
Equity leverage ratioTotal assets to shareholders funds
Non-current assets coverage ratioShareholders funds and non-current liabilities to non-current assets
Insolvency ratioCurrent and non-current liabilities and receivables
Source(s): Gajdosikova and Michulek (2025) 
[ViewLarge]
This Feature Is Available To Subscribers Only

or Create an Account

Close subscription notice
Close access options