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Debt Management Ratios
Those ratios—debt to total assets, debt to stockholders’ equity, and times interest earned—which measure a company’s mix of debt and equity financing.
Equity Financing
The process of raising capital through the sale of shares in a company, leading to share ownership by investors.
Vertical Analysis
A financial analysis method that represents each item in a financial statement as a percentage of a base figure, enabling comparison and assessment of financial health over different periods.
Trend Analysis
A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.
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