Thursday, 3 November 2011

Is it possible for a business to be solvent but not profitable? Why or why not?

Solvent - condition of a company able to satisfy its debt obligations when due. Various financial ratios can be computed to measure a company's degree of solvency, such as the debt equity ratio  and the interest coverage ratio.
Yes, it is profitable because the money that they debt it does back to the offices. 

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