Finance ABC

Welcome back to Finance ABC, where we break down finance concepts and explore how they shape the business world. In today’s episode, we’re diving into a topic that’s all about long-term financial stability: solvency ratios and capital structure. If liquidity ratios and working capital management help us understand a company’s short-term financial health, solvency ratios give us the bigger picture by looking at a company’s ability to sustain itself over the long term.