Short-term debt service risk ratio
factor.formula
Short-term debt service risk ratio
in:
- :
Total current liabilities at the end of the most recent reporting period refer to the total amount of debt that a company needs to repay within one year or one operating cycle. This value comes from the company's balance sheet.
- :
Total liabilities at the end of the most recent reporting period refers to all debts incurred by the company, including current and non-current liabilities. This value comes from the company's balance sheet.
factor.explanation
This ratio reflects the proportion of a company's total liabilities that need to be repaid in the short term (usually within one year). The higher the ratio, the greater the debt repayment pressure the company faces in the short term, the greater its reliance on short-term funds, and the higher its financial risk. This indicator can be used to assess a company's short-term debt repayment ability and financial risk level, and can be combined with other debt repayment ability indicators for analysis.