Solvency Ratios¶

Measures a company's ability to meet long-term obligations and survive financial stress.

Leverage Ratios¶

`debt_to_equity`¶

debt_to_equity(total_debt, total_equity) -> float | None

Formula: Total Debt / Total Equity

`net_debt_to_equity`¶

net_debt_to_equity(total_debt, cash, total_equity) -> float | None

Formula: (Total Debt − Cash) / Total Equity

`net_debt_to_ebitda`¶

net_debt_to_ebitda(total_debt, cash, ebitda) -> float | None

Formula: (Total Debt − Cash) / EBITDA. <2x considered safe; >4x is high leverage.

`debt_to_assets`¶

debt_to_assets(total_debt, total_assets) -> float | None

Formula: Total Debt / Total Assets

`debt_to_capital`¶

debt_to_capital(total_debt, total_equity) -> float | None

Formula: Total Debt / (Total Debt + Total Equity)

`equity_multiplier`¶

equity_multiplier(total_assets, total_equity) -> float | None

Formula: Total Assets / Total Equity. The leverage factor in DuPont decomposition.

Coverage Ratios¶

`interest_coverage_ratio`¶

interest_coverage_ratio(ebit, interest_expense) -> float | None

Formula: EBIT / Interest Expense. ICR > 3x is generally healthy; <1.5x is distress territory.

`ebitda_coverage_ratio`¶

ebitda_coverage_ratio(ebitda, interest_expense) -> float | None

Formula: EBITDA / Interest Expense. More lenient than ICR; commonly used by lenders.

`debt_service_coverage_ratio`¶

debt_service_coverage_ratio(net_operating_income, total_debt_service) -> float | None

Formula: Net Operating Income / Total Debt Service (principal + interest). DSCR > 1.25x is typical bank covenant.

TypeScript¶

import { debtToEquity, netDebtToEbitda, interestCoverageRatio } from 'fin-ratios'

debtToEquity({ totalDebt: 90e9, totalEquity: 60e9 })      // 1.5
netDebtToEbitda({ totalDebt: 90e9, cash: 30e9, ebitda: 80e9 })  // 0.75
interestCoverageRatio({ ebit: 70e9, interestExpense: 5e9 })     // 14.0

Solvency Ratios¶

Leverage Ratios¶

debt_to_equity¶

net_debt_to_equity¶

net_debt_to_ebitda¶

debt_to_assets¶

debt_to_capital¶

equity_multiplier¶