Short-term debt service stress ratio
factor.formula
Short-term debt service stress ratio:
This formula calculates the ratio of a company's short-term liabilities to total liabilities at the end of a specific reporting period to measure the company's reliance on short-term financing.
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Refers to the total amount of debt that an enterprise needs to repay within one year (or one operating cycle) at the end of the most recent financial reporting period, mainly including short-term loans, accounts payable, bills payable, etc. This indicator reflects the repayment pressure of an enterprise in the short term.
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Refers to the total amount of all liabilities of an enterprise at the end of the most recent financial reporting period, including current liabilities and non-current liabilities. This indicator reflects all debt obligations undertaken by the enterprise financially.
factor.explanation
This ratio quantifies the extent to which a company uses short-term debt to carry out its business activities. A higher ratio may mean that the company is more dependent on short-term financing, which may lead to greater debt repayment pressure during economic fluctuations or credit tightening. This indicator is one of the important indicators for assessing a company's short-term financial risk and debt repayment ability, and can be used to measure the company's financial soundness in quantitative analysis. At the same time, this indicator needs to be used with caution when comparing across industries. Different industries have differences in business models, capital requirements, and operating cycles, which may lead to different reasonable ranges for this indicator.