Banks as lending institutions would probably emphasize a few financial ratios to determine which businesses are suitable borrowers. In your opinion, what would be the two most important ratios that...

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Banks as lending institutions would probably emphasize a few financial ratios to determine which businesses are suitable borrowers. In your opinion, what would be the two most important ratios that should be used by bankers? Are there non-financial measures that bankers should be using as well?
Answered Same DayMay 28, 2021

Answer To: Banks as lending institutions would probably emphasize a few financial ratios to determine which...

Khushboo answered on May 29 2021
147 Votes
The bankers perform detailed due diligence before sanctioning the loan to an organization and the banks mainly analyse the two financial ratios before granting the sanction to the borrower. The two major ratios are as below:
· Current ratio: The lenders analyse the current ratio to measure the ability of an organization to settle the current obligations from current assets. If the company...
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