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Why do we use inferential statistics?
Solvency
The ability of an entity to meet its long-term financial obligations and continue operations into the foreseeable future.
Times Interest Earned Ratio
A financial metric that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes by interest expenses.
Acid-Test Ratio
A financial metric that assesses a company's ability to pay off its current liabilities with its most liquid assets, excluding inventory.
Days' Sales Uncollected
A financial metric that measures the average number of days it takes a company to collect payments after a sale has been made.
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