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State the nature of accounting information required by long-term lenders.
Category : Accounting | Answer: 1 4 Months Ago

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Long term lenders are interested in debt repaying capacity of the business, potential growth of business operational efficiency, profitability, Margin, liquidity, free cash flow (CFO-Capex) etc. Also long term lenders are interested in the enterprise value of the business. Long term lenders usually look leverage ratios such as Debt / EQUITY, DB / EBITDA, Interest Coverage ratio (Interest / EBITDA) and pay-down % of borrower before giving any loan to the organization.
4 Months Ago
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3 Months Ago