Question
In the context of credit risk assessment, which of the
following metrics would be the most reliable for an MSME lender to assess the long-term financial stability of a business, especially when the company is facing difficulties in the international markets?Solution
The Debt-Service Coverage Ratio (DSCR) measures an MSME’s ability to meet its debt obligations from its operating income. A higher DSCR indicates that the company is generating enough cash to service its debt, which is particularly important when the firm is facing challenges in international markets that could affect its revenues. This ratio provides a more accurate picture of long-term financial stability compared to other liquidity or profitability ratios.
If A : B = 7:5 and A is 14 more than B then find the sum of A and B.
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If 60% of a certain number is equal to 2/3rd of another number, what is the ratio between the numbers?
In a class of 455 students, 255 are girls and remaining are boys. Among boys, the ratio of number of boys who are wearing caps to those who are not wear...
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The ratio of the volumes of containers A, B, and C is 5:3:2 respectively. Volume of container D is 7 liters less than that of container A. If the differ...
The ratio between two numbers is 2:3. If each number is increased by 6, the ratio between then become 4:5, find the difference between numbers.
The ratio of the number of English books to Hindi books in a library shelf is 5:4. If 140 Hindi books are written by Pradeep, which constitutes 20% of t...
What number has to be added to each term of 2:3 to make the ratio 4:5?
